General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
August 09, 2018

OSFI issued the final Mortgage Insurer Capital Adequacy Test (MICAT) guideline, along with the guideline impact analysis statement. The guideline sets out the regulatory framework within which OSFI assesses whether a mortgage insurance company maintains adequate capital. The guideline comes into effect on January 01, 2019.

The MICAT guideline consolidates the capital requirements of OSFI for mortgage insurers into a single document, incorporating elements from advisory on capital requirements for federally regulated mortgage insurers (advisory) and relevant chapters of the 2018 Minimum Capital Test (MCT) guideline for federally regulated property and casualty insurance companies. In addition, the guideline introduces credit risk capital charges resulting from the implementation of IFRS 16 on leases in 2019 and includes updated credit risk factors for securitized assets that were earlier a part of "Guideline B-5 – Asset Securitization." IFRS 16 comes into effect on January 01, 2019.

OSFI issued MICAT in the final form as the guideline mainly consolidates existing guidance and is not expected to have a material impact on the regulatory capital for mortgage insurers. When it comes into effect, the MICAT will replace the advisory and the MCT guideline as the framework for assessing the capital adequacy of mortgage insurance companies. Property and casualty insurance companies that are not mortgage insurers will continue to determine their regulatory capital requirements using the MCT guideline. OSFI will monitor the effectiveness of the new MICAT guideline and make any necessary modifications when the guideline is next updated in 2021.

 

Related Links

Effective Date: January 01, 2019

Keywords: Americas, Canada, Insurance, Mortgage Insurers, MICAT Guideline, Capital Requirements, MCT Guideline, OSFI

Related Articles
News

EBA Single Rulebook Q&A: Third Update for March 2019

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

March 15, 2019 WebPage Regulatory News
News

OCC Updates Recovery Planning Booklet of the Comptroller's Handbook

OCC updated the Recovery Planning booklet of the Comptroller’s Handbook.

March 15, 2019 WebPage Regulatory News
News

EBA Publishes Report on Convergence of Supervisory Practices Across EU

EBA published annual report on the convergence of supervisory practices in EU.

March 14, 2019 WebPage Regulatory News
News

CPMI-IOSCO Publish Update to Level 1 Assessment of PFMI Implementation

CPMI and IOSCO jointly updated the Level 1 Assessment Online Tracker on monitoring of the implementation of the Principles for financial market infrastructures (PFMI).

March 14, 2019 WebPage Regulatory News
News

Agustín Carstens of BIS Speaks About New Role of Central Banks

While speaking at the 20th anniversary conference of the Financial Stability Institute (FSI), Agustín Carstens, the General Manager of BIS, highlighted the need for regulatory actions in light of the continued evolution of financial technology.

March 14, 2019 WebPage Regulatory News
News

PRA Publishes Policy Statement on Group Supervision Under Solvency II

PRA published a policy statement (PS9/19) that provides feedback on responses to the consultation paper CP15/18 and the final supervisory statement SS9/15 (Appendix) on group supervision under Solvency II.

March 14, 2019 WebPage Regulatory News
News

ECB Announces Start Date for Euro Short-Term Rate

ECB announced that it will start publishing the euro short-term rate (€STR) as of October 02, 2019, reflecting the trading activity of October 01, 2019.

March 14, 2019 WebPage Regulatory News
News

PRA Proposes to Update the Pillar 2 Capital Framework for Banks

PRA is proposing (CP5/19) to update the Pillar 2 capital framework to reflect continued refinements and developments in setting the PRA buffer (Pillar 2B).

March 13, 2019 WebPage Regulatory News
News

PRA Publishes Policy Statement Related to Credit Risk Mitigation

PRA published a policy statement (PS8/19) that contains the final policy in the updated supervisory statement SS17/13 on credit risk mitigation (Appendix 1) as well as the statement SS31/15 on Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process or SREP (Appendix 2).

March 13, 2019 WebPage Regulatory News
News

FED Updates Supplemental Information and Q&A for Form FR Y-14

FED updated the supplemental instructions and the questions and answers (Q&A) document for the information collection on capital assessments and stress testing, which is covered by the reporting form FR Y-14A.

March 13, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2750