Office of the Superintendent of Financial Institutions
OSFI continues to actively monitor the evolving situation with COVID-19. It is taking a number of steps to reprioritize its work and requirements to allow institutions to focus on their resilience efforts and their contributions to financial stability, including:
In determining regulatory capital requirements, provided there is no claim outstanding on a mortgage loan, mortgage insurers should not consider a mortgage loan to be delinquent or in arrears if a deposit-taking institution has approved a deferral of mortgage payments, and the borrower respects the payment deferral terms and conditions.
This capital treatment applies for the lesser of 6 months or the duration of the payment deferral. OSFI may require additional reporting in respect of these loans.
OSFI has decided to suspend, until further notice, the IFRS 17 semi-annual progress reporting that insurers are required to file with OSFI.
In its March 13
press release, OSFI communicated that, in light of current developments, it is suspending all of its consultations and policy development on new or revised guidance until conditions stabilize. This decision allows insurers to focus their efforts on addressing challenges posed by COVID-19 and current market conditions. Included below is a table listing policy and other initiatives affecting insurers that are underway, or planned for the near future, that are being put on hold until further notice.
In addition, recognizing that some insurers may encounter difficulties in meeting deadlines for certain near term regulatory filings, OSFI is prepared to offer flexibility with upcoming filings. Insurers requiring flexibility should reach out to their OSFI Lead Supervisor.
If OSFI decides to further modify supervisory, regulatory or capital expectations, insurers and other stakeholders will be notified in a timely manner.
OSFI will continue to engage insurers on further developments over the coming weeks. Insurers should be proactive in informing their OSFI Lead Supervisor of any financial or operational challenges they encounter as a result of COVID-19.
Includes life, property & casualty and mortgage insurers; collectively referred to as FRIs or insurers.
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Insurers that have already completed the QIS and wish to submit results by month’s end may do so.
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Insurers that have finalized their comments and wish to send them to OSFI may do so.
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