For Immediate Release
Ottawa - November 14, 2019─ Office of the Superintendent of Financial Institutions
While broadly supportive of the goals of the Insurance Capital Standard (ICS), the Office of the Superintendent of Financial Institutions (OSFI) did not support the ICS design proposed for a five-year monitoring period at the Executive Committee Meeting of the International Association of Insurance Supervisors (IAIS) in Abu Dhabi, United Arab Emirates.
OSFI's view is that that the Standard in its current form is not fit for purpose for the Canadian market. Specifically, the proposed capital requirements for long-term products are too high to be compatible with OSFI's mandate of allowing Canadian insurers to compete and take reasonable risks.
During the five-year monitoring period, OSFI will continue its work in trying to achieve an international capital standard for insurance companies that works for all jurisdictions.
- Canadian insurers will continue to be subject to the requirements of OSFI's robust capital frameworks for federally regulated insurance companies.
- An initiative of the IAIS, the International Capital Standard is a proposed common capital standard for large internationally active insurance groups.
OSFI – Public Affairs
The Office of the Superintendent of Financial Institutions Canada (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.