Public consultation on the draft Minimum Capital Test (MCT) 2026

Information
Publication type
Letter
Category
Capital Adequacy Requirements
Date
Sector
Property and Casualty Companies
Table of contents

Today, the Office of the Superintendent of Financial Institutions (OSFI) is beginning a 90-day consultation on the draft MCT 2026 guideline, along with associated documents. The final MCT 2026 guideline will be published on November 20, 2025, and will come into effect on January 1, 2026.

Key revisions to the MCT 2026 guideline include:

  • Simplification of unexpired coverage formula
  • Update to regulatory adjustments to net assets available for insurance receivables
  • Update to capital confirmation requirements for user fees
  • Minor adjustments and clarifications to apply the framework accurately

OSFI will host an Industry Day on June 6, 2025, to provide more details to stakeholders.

Comments can be submitted via email to MCT-TCM@osfi-bsif.gc.ca by end of day August 20, 2025.

The following is the list of documents included for public consultation:

  • Draft of MCT 2026 Guideline
  • Draft MCT regulatory reporting form PC4 and instructions

Should you have any questions, please contact Regis Dahany, Managing Director, Insurance Capital and Liquidity Standards Division by email at regis.dahany@osfi-bsif.gc.ca or use the mailbox, MCT-TCM@osfi-bsif.gc.ca.

Sincerely,

Amar Munipalle
Executive Director, Risk Advisory Hub