Regulatory Alerts2018-03-31
Life Insurance Capital Adequacy Test Public Disclosure Requirements
OSFI mandates federally regulated life insurers to publicly disclose capital adequacy data under the LICAT framework, requiring minimum Core and Total ratios of 55% and 90%, respectively. Insurers must publish annual quantitative templates alongside qualitative narratives on their websites, ensuring consistent and comparable reporting of capital positions and risk exposures. These disclosures undergo internal audit review and ongoing supervisory oversight, thereby enhancing market discipline and enabling stakeholders to accurately assess insurer solvency.
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