OSFI proposed revisions to its Life Insurance Capital Adequacy Test (LICAT) guideline for federally regulated life insurers. The guideline was released on September 12, 2016 and will be effective from January 01, 2018.
The LICAT guideline will replace Guideline A: Minimum Continuing Capital and Surplus Requirements (MCCSR). All federally regulated life insurers completed an implementation preparation exercise comprising three parts: LICAT test run, sensitivity testing, and implementation plan development. OSFI made refinements to the September 2016 version of the LICAT guideline based on the results of this exercise and the feedback received from various participants.
Comment Due Date: July 28, 2017
Effective Date: January 01, 2018
Keywords: OSFI, Americas, Canada, LICAT, Insurance, Capital Adequacy, Guideline, MCCSR
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