The Office of the Superintendent of Financial Institutions (OSFI) on Thursday published a draft of its proposed revisions to the Minimum Capital Test (MCT) for federally regulated property and casualty insurance (P&C) companies for industry consultation.
The MCT utilizes a risk-based formula to establish a minimum capital framework or P&C insurers.
OSFI is proposing various amendments to the rule, including measures that aim to clarify aspects of the rule, eliminate requirements that are no longer needed under transitional arrangements, and improve consistency.
The revised guideline, which will take effect on Jan. 1, 2018, is out for comment until Aug. 4.
After considering the industry’s comments, OSFI aims to issue the final version of the rule in September.