Mr. Michael Bennett:

The rules of Basel II and Basel III specify for unfunded credit protection, and mortgage insurance is a type of unfunded credit protection. There are specified rules in terms of certainty of payment, timeliness of payment and certainty of cover. There is specification of many criteria that insurance protection must satisfy if it provides capital relief benefit to lenders. We hope to design a product which meets the economic needs of lenders and which also satisfies the regulatory needs for what the regulator wishes to achieve. It provides capital benefit to the regulator. There has been much movement between the Basel II and the Basel III rules in order to bring greater specificity to the type of cover that can be provided.