Echelon and Orion Insurance Merger

Summary#

Orion Travel Insurance Company plans to switch from Alberta law to federal law under the Insurance Companies Act (Canada) and then merge with Echelon Insurance into a single company named Echelon Insurance / Échelon Assurance. The companies say the combined firm's head office would be in Mississauga, Ontario and the proposed effective date is January 1, 2023.

What it does#

• Announces an intended application for letters patent of continuance so that Orion Travel Insurance Company becomes a federal insurer under the Insurance Companies Act (Canada).
• Announces a planned joint application for letters patent of amalgamation so that Orion Travel Insurance Company and Echelon Insurance would merge into one company called Echelon Insurance / Échelon Assurance.
• Says the merged company’s head office would be in Mississauga, Ontario.
• Gives a proposed effective date of January 1, 2023 (or another date set in the letters patent).
• Tells readers they can object in writing to the Office of the Superintendent of Financial Institutions by October 3, 2022.
• Notes the notice is only an application; the Minister of Finance (and the normal review process) will decide whether letters patent are issued.

Who's affected#

• Customers and policyholders of Orion Travel Insurance Company and Echelon Insurance — their insurer’s legal structure would change.
• Employees, agents, and business partners of the two companies — operations or reporting lines could be affected.
• Regulators and anyone who deals with the companies’ corporate or regulatory filings.
• The notice does not explain specific changes to insurance coverage, premiums, or claims handling, so it is unclear exactly how individual policyholders will be affected.

Why it matters#

• Moving a company from provincial to federal incorporation and then merging can change which federal rules apply and where corporate decisions are based. That can affect complaints, regulatory oversight, and corporate governance.
• For customers, the practical effects are uncertain from this notice: coverage terms may stay the same, but administrative details (who handles claims, where records are kept) could change.
• Interested people had a deadline to object (October 3, 2022) while the decision was still pending, and the merger only takes effect if the federal authorities approve the applications.