The Office of the Superintendent of Financial Institutions (OSFI) on Friday published a draft set of proposed changes to the new Life Insurance Capital Adequacy Test (LICAT).
LICAT took effect on Jan. 1, replacing the previous capital rules (which were known as the Minimum Continuing Capital and Surplus Requirements (MCCSR)).
“As was the practice with the MCCSR guideline, OSFI will conduct periodic reviews of the LICAT guideline to monitor for, and respond to, emerging trends and issues raised by stakeholders and to ensure LICAT remains effective and reflective of life insurance industry developments,” OSFI states in a letter published on Friday.
Comments on the proposed changes are due by July 3.