OSFI issued the final version of the guideline on Life Insurance Capital Adequacy Test (LICAT) public disclosure requirements. The guideline clarifies expectations of OSFI on simple, useful, and comparable public disclosures for federally regulated life insurance companies and insurance holding companies. The guideline is effective for the period ending December 31, 2018.
The Annex contains a summary of the comments received for the consultation on draft guideline, along with the response of OSFI to these comments. The LICAT guideline replaced the Minimum Continuing Capital and Surplus Requirements (MCCSR) guideline, with effect from January 01, 2018. The guideline establishes the standards that OSFI uses to assess whether a life insurer maintains adequate capital, or an adequate margin, to support risks specific to the life insurance business. It does not address public solvency risk disclosures by life insurers. The guideline applies to federally regulated life insurance companies (including Fraternal Benefit Societies) and insurance holding companies.
Effective Date: December 31, 2018
Keywords: Americas, Canada, Insurance, Disclosure Requirements, LICAT, Guideline, Capital Adequacy, OSFI
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