Capital Requirements for Property and Casualty Insurers - Final 2026 Rules
Official title: Final Minimum Capital Test (MCT) Guideline (2026)
Why This Matters
This is highly technical stuff for insurance industry professionals. If you work in insurance regulation or finance, these rules affect how your company calculates capital reserves. For most Canadians, this operates in the background—ensuring your insurer stays financially stable.
What Could Change
Insurance companies will use simplified formulas to calculate their required capital reserves starting in 2026. The minimum capital test ratio stays at 100%, with a 150% supervisory target. New rules clarify how to handle insurance receivables and user fee confirmations.
Key Issues
- How should insurers calculate capital requirements for unexpired coverage risk?
- What regulatory adjustments should apply to insurance receivables?
- What capital confirmation requirements should apply to user fees?
How to Participate
- This consultation is now closed. Review the Summary of comments and responses to see what feedback was received and how OSFI responded.
- Read the final MCT Guideline (2026) and the accompanying letter.
What Happened
OSFI received public comments during the 90-day consultation period and has published a summary of comments and responses. The final guideline simplifies MCT guidance on insurance risk (specifically unexpired coverage) and updates regulatory adjustments for insurance receivables and capital confirmation requirements for user fees.