Markel and Insurance Stewards Seek Canadian Approval

Summary#

Two notices say new insurance businesses plan to seek approval to operate in Canada.
Markel International Insurance Company Limited (a U.K. insurer) plans to apply to the regulator on or after September 5, 2023 to insure various commercial risks in Canada. Separately, Stewardship Alternative Income Fund together with Portfolio Stewards Inc. and two individuals plan to apply on or after September 26, 2023 to create a life insurance company called Insurance Stewards Inc. and start business in Toronto.

What it does#

• Markel International Insurance Company Limited

  • Will file an application under the Insurance Companies Act (Canada) (section 574) to be allowed to insure risks in Canada.
  • Intends to use the English name Markel International Insurance Company Limited and the French name Markel compagnie d’assurance internationale limitée.
  • Wants permission to write these classes of insurance: accident and sickness; boiler and machinery; fidelity; legal expenses; liability; property; and surety.
  • The company’s head office is in London, England, and its planned Canadian chief agency would be in Toronto, Ontario.
  • The filing is planned for on or after September 5, 2023.

• Stewardship Alternative Income Fund / Portfolio Stewards Inc.

  • Plan to apply under the Insurance Companies Act (Canada) (paragraph 25(2)) for the Minister of Finance to issue letters patent to incorporate a life insurance company.
  • The proposed company would offer life and health insurance and operate under the name Insurance Stewards Inc. with a head office in Toronto, Ontario.
  • The application is planned for on or after September 26, 2023. The public may object in writing to the Office of the Superintendent of Financial Institutions on or before September 26, 2023.
  • The notice makes clear that publication of the application does not guarantee the letters patent will be granted; the outcome depends on the normal review and the Minister’s decision.

Who's affected#

• Businesses and brokers that buy commercial insurance for the classes listed could see a new insurer offering coverage.
• People who buy life and health insurance may be affected if Insurance Stewards Inc. is approved and starts selling products.
• Markel Corporation (the parent of Markel International) and financial firms involved in launching the new insurer are directly involved.
• The federal regulator, the Office of the Superintendent of Financial Institutions, and the Minister of Finance will handle the applications.
• It is not yet clear which customers or regions will be first affected if the approvals are granted.

Why it matters#

• New entrants can increase competition, which may lead to more product choices or different pricing for commercial and life insurance buyers.
• A Canadian chief agency and a new life insurer based in Toronto could mean more local underwriting capacity and business activity in the city.
• Nothing is final yet: both measures are applications, so any real effect depends on regulatory approval.