Finance Minister Jim Flaherty is launching a facility that will provide wholesale term borrowing for federally-regulated life insurance companies.

Provincially-regulated insurers can also tap into the facility, known as the Canadian Life Insurers Assurance Facility, on the same commercial terms provided the minister approves.

That was part of measures passed in the federal budget and is designed to give insurers access to credit similar to that given to banks by Ottawa, when it offered to buy up to $125 billion in mortgage assets.

The government has also offered about $200 billion in bank debt guarantees, although none have made use of the program.

In a release, Flaherty said that this program will help Canada's life insurance industry access wholesale debt markets.

With credit conditions easing, it is unclear to what extent Canada's insurers will make use of the new facility.

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