Office of the Superintendent of Financial Institutions
Guideline A, Minimum Continuing Capital and Surplus Requirements
(MCCSR) for Life Insurance Companies, the Advisory Supplementary
Information for Life Insurance Companies that Determine Segregated Fund
Guarantee Requirements Using an Approved Model and the OSFI
Instruction Guide Use of Internal Models for Determining Required
Capital for Segregated Fund Risks (MCCSR) describe the capital
requirements for life insurance companies with segregated fund guarantee
The Advisory accompanying this letter describes new minimum calibration
criteria for models that, with OSFI approval, may be used to determine
segregated fund guarantee capital requirements.
The new minimum calibration criteria will apply to segregated fund
guarantee models approved for use in determining capital requirements for
business written on or after January 1, 2011. It is OSFI’s expectation
that these criteria and their scope of application will be further
considered as part of OSFI’s announced process for developing more market
consistent techniques for determining segregated fund guarantee capital
requirements, as noted in OSFI’s July 28, 2010 letter
to the Canadian Life and Health Insurance Association (PDF, 92 kB).
Questions concerning the Advisory should be addressed to Michael Bean,
Director, Capital Division, at (416) 954-0503, or by e-mail at email@example.com.
The Advisory will come into effect on January 1, 2011.