Federal financial regulators Friday issued a set of draft revisions to their capital rules for life insurers.
The Office of the Superintendent of Financial Institutions has published for comment a draft revised version of its capital rules, known as the Minimum Continuing Capital and Surplus Requirements (MCCSR) guideline. OSFI says that the guideline is being updated to reflect recent changes in accounting rules, and to resolve certain industry issues.
OSFI says it received comments from industry stakeholders that the existing capital rules “do not adequately provide for group policies where there is a sharing of risk between the insurer and the policyholder.”
Revisions are also being made in light of recent changes in the accounting treatment of joint ventures and employee benefits for defined benefit pension plans. Updates are also being made as a result of company inquiries, requests for clarification, or other developments, it says.
The revised guideline is to take effect on Jan. 1, 2013. Comments on the proposed changes are due by August 31.