On Nov. 21, C-OSFI issued 2025 insurer capital adequacy test guide.
C-OSFI published revised Mortgage insurer capital adequacy test (MICAT) guideline.
Outlined minimum amount of capital insurers must hold to stay financially secure.
Updated the capital rules for multi-unit residential mortgage insurance risk by standardizing the approach and leveraging the capital adequacy requirements.
Amended multi-unit (MU) residential mortgage insurance capital requirements.
MU residential mortgage defined as rental building with at least five housing units.
Used standardized approach and leveraged capital adequacy requirements risk weight factors for real estate exposures dependent on cash flows generated by property.
The MU capital framework leveraged the Capital adequacy requirements (CAR) guideline for federally regulated mortgage lenders based on the Basel III reforms.
Effectiveness
Final MICAT 2025 guideline comes into effect on Jan. 1, 2025.
