ICBC’S declining capital reserve levels

by Richard C. McCandless

Most developed countries require banks, insurance companies and pension funds to maintain sufficient capital reserves to meet their obligations. In Canada, federally regulated financial companies must meet the capital reserve target established by the Office of the Superintendent of Financial Institutions (OFSI).

The BC government requires that ICBC follow the OSFI definitions to calculate the capital reserve levels for the compulsory Basic and for the Optional insurance programs. 

Occasional Paper No. 2 30 July 2016