OSFI Consideration in accessing SST program

wilsonchan18wilsonchan18
in OSFI.Stress

Hi,

One of the consideration is "Are Scenarios included that compromise viability"?
Can you please share more what this means here?

Thanks and Cheers,
Wilson

Comments

  • grahamgraham

    A scenario that compromises viability is one that could cause the insurer to go bankrupt. An example is a hurricane. These are are scenarios that test whether the insurer can absorb significant losses.

    (An example of a scenario that would not compromise viability is a normal summer thunderstorm. People may still make claims for basement flooding or lightning damage but the total losses to the insurer would be relatively minor and would not cause bankruptcy.)

  • wilsonchan18wilsonchan18

    oh, very lucky I ask. Now I know, thanks Graham! :)

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