Quebec’s financial services regulator, Autorité des marchés financiers, has published the final version of its solvency requirements for insurers.

The document released by the AMF Solvency Advisory Committee outlines the new structure for principle-based solvency financial requirements for Canadian life insurers.

The paper calls for regulatory asset requirements to be calculated on two bases — a Target Asset Requirement (TAR) and at a minimum level (Minimum Asset Requirement or MAR).

It notes that all insurers would use a factor-based approach to calculate the MAR. The most sophisticated method of calculating TAR would be the Advanced Approach which uses models integrated with the insurer’s risk management system, it adds.