AMF published the revised guideline on capital adequacy requirements (CAR) for property and casualty (P&C) insurance companies. This updated guideline has been effective as of January 01, 2018. The guideline outlines the capital framework, using a risk-based formula for target capital requirements and minimum capital requirements, and defines the capital that is available to meet the minimum standard.
The Minimum Capital Test (MCT) determines the minimum capital required and not the optimum capital required, at which an insurer must operate. The guideline applies to all P&C insurers that are licensed to transact insurance business in Québec and hold a charter issued by the province of Québec or by another Canadian jurisdiction. It applies on a consolidated basis, in accordance with Canadian generally accepted accounting principles. Accordingly, each component of capital available and capital required is calculated to include all of an insurer’s operations as well as any financial activity by its subsidiaries. The guideline is intended to increase the transparency and predictability of the criteria used by AMF in assessing the quality and prudence of management practices of the financial institutions for which these criteria are intended.
Effective Date: January 01, 2018
Keywords: Americas, Canada, Insurance, CAR, Property and Casualty Insurers, MCT, AMF
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).
ECB published results of the financial stability review in May 2020. Among other issues, the financial stability review assesses operations of the financial system so far during the COVID-19 pandemic.
Financial policymakers and international standard-setters met virtually with private-sector executives to discuss international policy responses to COVID-19 pandemic.
ESMA published a letter responding to IASB on the exposure draft on the phase 2 of the interest rate benchmark reform.
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA published thematic note presenting a preliminary assessment of the impact of COVID-19 outbreak on the banking sector in EU.