Differential Premiums


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

To provide a financial incentive for credit unions to enhance their safety and soundness, DICO employs a risk-based Different Premium Score Determination System (DPSD) which is designed to provide lower premiums to credit unions which adopt prudent risk management practices. This system is based currently on two risk measures.

Each year DICO reviews its assessment process and premium rates to ensure that the DPSD system is achieving its primary goal of encouraging lower risk-taking 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 new Differential Premium Score Determination (DPSD) effective for credit unions with financial years beginning on or after January 1, 2015. Links to the Ontario Regulation 120/14, Differential Premium Score Determination (DPSD) document, and tools are provided below:

Annual Premium Regulation
Differential Premium Score Determination document
  • DICO Differential Premium Score Determination published in The Ontario Gazette on April 12, 2014
  • DPS Continuous Premium Calculation Tool (updated November 2014)