Regulatory Alerts2020-04-09
Additional Capital and Prudential Measures for Québec-Chartered Insurers in Response to COVID-19
The Autorité des marchés financiers has issued temporary capital and prudential relief measures for Québec-chartered insurers to mitigate the financial impact of COVID-19. The notice permits life, health, and property insurers to treat loan, lease, and premium payment deferrals as performing assets without triggering higher credit risk factors, while mandating a rolling six-quarter average for interest rate risk capital on participating products and deferring non-centrally cleared derivatives margin requirements to September 2022. These capital relief measures are retroactive to the first quarter of 2020, generally remain in effect for up to six months, and require insurers to maintain sound risk management practices and provide additional reporting as requested.