Regulatory Alerts2025-01-01
Life Insurance Capital Adequacy Test (LICAT) Instructions for Jamaica
The Financial Services Commission of Jamaica issued these final instructions to establish the Life Insurance Capital Adequacy Test (LICAT) for life insurers and foreign branches operating in the jurisdiction. The framework mandates a minimum capital ratio exceeding 100% by defining available capital through Tier 1 and Tier 2 components and calculating required capital against asset, insurance, and operational risks. Specific methodologies are provided for determining credit, market, and insurance risk factors, including detailed rating-based weights and deductions for intangible assets and substandard investments.
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