Endurance Branch and KOHO Bank Applications

Summary#

• Endurance Specialty Insurance Ltd. plans to apply to establish a Canadian branch that would be allowed to insure a range of risks in Canada. The company says it will file its application on or after March 17, 2024 under the Insurance Companies Act.
• KOHO Financial Inc. plans to apply to become a federally chartered Schedule I bank called KOHO Bank (French: Banque KOHO). The company says it has filed or will file for letters patent under the Bank Act; people can object to that plan until April 18, 2024.

What it does#

• Endurance notice:
  • Asks federal authorities for permission to insure Canadian risks in the classes of property, liability, boiler and machinery, fidelity, automobile, marine, surety, and aircraft.
  • Says the insurer is incorporated in Bermuda, with a head office in Hamilton, Bermuda, and a planned Canadian chief agency in Toronto, Ontario.
  • Notes the ultimate parent company is Sompo Holdings, Inc., incorporated in Japan.
  • Intends to file the formal application on or after March 17, 2024.
• KOHO notice:
  • Seeks letters patent from the Minister of Finance to create a Schedule I bank named KOHO Bank / Banque KOHO under the Bank Act.
  • Says the bank would offer deposit and lending products such as savings accounts, prepaid cards, and retail loans to Canadian residents.
  • Gives the public an opportunity to send written objections to the Office of the Superintendent of Financial Institutions (OSFI) by April 18, 2024.
  • Notes that the notice alone does not guarantee the bank will be approved.

Who's affected#

• For Endurance Specialty Insurance Ltd.:
  • Businesses and individuals who buy commercial or specialty insurance in the listed classes (property, liability, automobile, marine, aircraft, etc.).
  • Insurance brokers and agents who place coverage in those classes.
  • The Toronto insurance market if the company establishes its Canadian agency there.
• For KOHO Financial Inc.:
  • Current and potential customers of KOHO who use its prepaid cards, accounts, or other financial services.
  • Competing banks and fintech firms in Canada’s retail banking market.
  • Anyone who wishes to object to the bank application (objections must go to OSFI by April 18, 2024).
• Regulators involved: the Superintendent of Financial Institutions and the Minister of Finance (for the bank application).

Why it matters#

• These are applications that could bring new players into Canada’s insurance and banking markets.
• If approved, Endurance would offer another source of specialty insurance capacity in Canada, which can affect availability and pricing for certain commercial coverages.
• If KOHO becomes a Schedule I bank, its products would be offered under a federal banking charter rather than as a fintech-only service, which could change how its products are regulated and how customers access banking features — though the notice does not spell out regulatory or deposit-insurance outcomes.
• There is an explicit public process for objections to the KOHO bank application; the deadline is April 18, 2024.