Differential Premiums

Ontario credit unions pay premiums to provide for deposit insurance coverage for their members.

To provide a financial incentive for credit unions to enhance their safety and soundness, DICO employs a risk-based Differential Premium System (DPS) which is designed to provide lower premiums to insured institutions which adopt a low risk profile. This system is based currently on five risk measures.

Each year DICO reviews its assessment process and premium rates to ensure that the DPS is achieving its primary goal of encouraging lower risk behaviour.


Differential Premium System Consultations

In 2014, DICO recommended changes to the calculation of deposit insurance premiums based on two components - capital and corporate governance - to the government. The government proclaimed the new Differential Premium Score Determination (DPSD) on April 30, 2104 which will become effective for insured institutions with financial years beginning on or after January 1, 2015. Links to the revised regulation (Ontario Regulation 120/14), Differential Premium Score Determination (DPSD) document, consultation papers, tools and comments are provided below:

Revised Annual Premium Regulation
Differential Premium Score Determination document
  • DICO Differential Premium Score Determination published in The Ontario Gazette on April 12, 2014
DPS Consultation April 2013
  • Cover Letter
  • Consultation Paper
  • DPS Continuous Premium Calculation Tool (updated November 2014)
DPS Consultation July 2012
  • Comments resulting from the consultation process
  • Cover Letter
  • Consultation Paper