Canadian Regulatory News

OSFI New Standard Approach to Setting Capital Requirements

In November 2008, the Standardized Approach Working Group (SAWG), with representatives from OSFI, Assuris and the AMF, began development of the future MCCSR standardized approach. The proposed framework is consistent with the “Canadian Vision for Life Insurer Solvency Assessment,” and uses a target asset requirement approach. The new methodology for market and credit risk is targeted to be implemented January 1, 2012.

2008 Changes to MCCSR Guidelines (January 2009)

In late 2008, OSFI released several guidance documents related to MCCSR. Changes were made to capital requirements for Seg Fund Guarantees and numerous other areas. While most changes take effect as of January 1, 2009, some could impact year end 2008 capital reporting. This article elaborates on the changes and discusses some pending AXIS enhancements.