Canadian Insurers Get 3 More Years to Comply With New OSFI Rules

Canadian insurance companies including Manulife Financial Corp. and Sun Life Financial Inc. will have three more years to comply with new regulations from the Office of the Superintendent of Financial Institutions.

OSFI said it will complete its review of the life insurance regulatory framework by 2016 rather than next year, as was previously announced. Companies will now be required to implement the new rules in 2018 instead of 2015, OSFI said yesterday in a statement.

The agency announced plans last year to revise rules for Canada’s life insurance companies, including capital requirements and increased transparency. It has since been working with insurers to create the new standards.

“The revised timeline is needed to provide OSFI more time to develop, refine and calibrate the capital framework components, while continuing consultations with industry stakeholders,” according to the statement. “OSFI is satisfied that the additional time will not pose undue risks to the life insurance industry.”

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