OSFI issued final versions of Guideline E-19, Guideline A-4, and the Key Metrics Report for certain insurers. The documents have been updated to reflect the introduction of Guideline A: Life Insurance Capital Adequacy Test (LICAT) for life insurers, to reflect minor updates for property and casualty (P&C) insurers, and to improve overall clarity. The effective date for the guidelines is January 01, 2018.
The updates were reflected in draft versions of these documents that were published in July 2017 for consultation. The comment period had ended on August 18, 2017. The following is the description of the published documents:
- Guideline E-19 on Own Risk and Solvency Assessment (ORSA). This guideline sets out expectations of OSFI with respect to the ORSA of federally regulated insurers.
- Guideline A-4 on Regulatory Capital and Internal Capital Targets. This guideline sets out OSFI’s expectations with regard to the capital and solvency assessment of federally regulated insurers, within the context of OSFI’s Supervisory Framework.
- Key Metrics Report (KMR) and associated instructions for life and P&C insurers. All federally regulated insurance companies are required to complete a KMR. The KMR form is to be submitted to OSFI at least annually and within 30 days of the ORSA report being reviewed by the insurer’s Board of Directors or signed off by its Chief Agent.
Related Link: Notification and Guidelines
Keywords: Americas, Canada, Insurance, LICAT, ORSA, Regulatory Capital, KMR, OSFI
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.