AMF published the revised guideline on capital adequacy requirements (CAR) for life and health insurers as well as property and casualty (P&C) insurers in Quebec. The updated guidelines become effective as of January 01, 2019. The guidelines are intended to enhance the transparency and predictability of the criteria on which AMF is based and to assess whether financial institutions are complying with their obligation to follow sound and prudent management practices.
The risk-based capital adequacy framework is based on an assessment of the degree of insurance, market, credit, and operational risks, by applying varying risk factors and margins. The guideline on CAR outlines the capital framework, using a risk-based formula for target capital requirements and minimum capital requirements, in addition to defining the capital that is available to meet the minimum standard.
Effective Date: January 01, 2019
Keywords: Americas, Canada, Quebec, Insurance, CAR, Life and Health Insurers, Property and Casualty Insurers, AMF
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