1 September 2019
GFIA has again raised serious concerns about proposed capital rules from the Canadian Office of the Superintendent of Financial Institutions (OFSI), which the industry fears could lead to a lack of coverage in Canada.
Proposed rules from the OSFI would require P&C insurers to be fully capitalised against the three extremely remote loss scenarios.
However, the stress scenarios are far too extreme and the capital gap is too large to be afforded by these companies.
The ultimate outcome would be a shortage of capacity for specialised types of risks and industries, such as aviation, nuclear, oil and gas, and large construction projects.