The Office of the Superintendent of Financial Institutions announced the latest revisions to capital adequacy requirements for life insurers.

OSFI said Thursday that revisions have been made to the guideline concerning Minimum Continuing Capital and Surplus Requirements (MCCSR), for life insurance companies. The changes are to take effect on January 1.

Among other things, the revised guideline:

> accommodates adoption of International Financial Reporting Standards in Canada;

>clarifies the treatment of risk mitigation and risk transfer (including reinsurance) within the guideline; and

> prepares for possible changes to actuarial standards, as OSFI notes that the Canadian Institute of Actuaries may update its standards of practice in 2011 to allow companies to recognize future mortality improvement in policy liabilities.