ECTS Users' Guide: Europe Direct is a service to help you find answers to your questions about the European Union
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In Canada, a significant portion of an insurer’s capital requirement (especially for a life
insurer) arises from its exposure to credit risk. This component of the overall insurer capital
requirement is determined using asset default factors. For rated short term securities, bonds,
loans and private placements, these factors are based on the rating agency grade. In its life
insurer capital guideline, the Office of the Superintendent of Financial Institutions (OSFI)
states that:
“A company must consistently follow the latest ratings from a recognized, widely
followed credit rating agency. Only where that rating agency does not rate a particular
instrument,...
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ECTS Users’ Guide: Europe Direct is a service to help you find answers to your questions about the European Union
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ECTS Users’ Guide: Europe Direct is a service to help you find answers to your questions about the European Union
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