Guideline - Mortgage Insurer Capital Adequacy Test

Document Properties

  • Type of Publication: Letter
  • Reference: Guideline for Federally Regulated Mortgage Insurers
  • Date: August 9, 2018
  • To: Federally Regulated Mortgage Insurers

Today, OSFI is issuing the guideline Mortgage Insurer Capital Adequacy Test (MICAT).

This guideline combines the January 1, 2017 advisory Capital Requirements for Federally Regulated Mortgage Insurers (Advisory) and the relevant portions of the guideline Minimum Capital Test for Federally Regulated Property and Casualty Insurance Companies (MCT Guideline) into a single document.

In addition, the guideline introduces credit risk capital charges resulting from the implementation of IFRS 16 in 2019 and includes updated credit risk factors for securitized assets that were previously part of Guideline B-5 – Asset Securitization.

Given that the MICAT mainly consolidates existing guidance and is not expected to have a material impact on the regulatory capital for mortgage insurers, OSFI is issuing the MICAT in final form.

When it comes into effect on January 1, 2019, the MICAT will replace the Advisory and the MCT Guideline as the framework for assessing the capital adequacy of mortgage insurance companies.

Property and Casualty insurance companies that are not mortgage insurers will continue to determine their regulatory capital requirements using the MCT Guideline.

Should you have any questions related to regulatory capital requirements for mortgage insurers, please contact Andrei Serykh, Modelling Specialist, Capital Division ( at (416) 952-4137.


Carolyn Rogers
Assistant Superintendent, Regulation