Office of the Superintendent of Financial Institutions
March 27 and
April 9 letters, OSFI announced that in situations where:
OSFI further communicated that it would revisit the treatment, as needed.
OSFI continues to monitor the evolving situation with COVID-19, and has been in frequent contact with institutions to assess their operational capacity and management of the current economic challenges. As a result, today OSFI is announcing the following updates to the special capital treatment that applies when loan payment deferrals or premium deferrals have been granted:
This change supports the accurate measurement of insurers’ capital needs and the long-term integrity of OSFI’s capital framework. While the special capital treatment and regulatory flexibility related to premium and payment deferrals was warranted at the onset of COVID-19, insurers and their clients have adapted to the extraordinary circumstances and unprecedented disruptions related to the pandemic, and insurers are in a better situation to respond to pressures with business-as-usual measures. As such, the special capital treatment for loan payments and premium deferrals is no longer warranted and is being phased out through the changes being announced.
OSFI continues to monitor the impacts of COVID-19 on insurers and is prepared to adjust its guidance and temporary measures if necessary.
Further clarifications can be found in our
updated FAQs for Federally Regulated Insurance Companies.
Includes life, property & casualty and mortgage insurers; collectively referred to as FRIs or insurers.
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