Endurance branch and KOHO bank application

Summary#

• Two public notices were published about planned filings with federal regulators. Endurance Specialty Insurance Ltd. says it will apply to open a Canadian branch to insure several commercial lines; the application will be filed on or after March 17, 2024.
• KOHO Financial Inc. says it will apply for letters patent to create a Schedule I bank called KOHO Bank; people may object to that plan until April 18, 2024.

What it does#

• Endurance Specialty Insurance Ltd.
  • Plans to file an application under the Insurance Companies Act (section 574) asking permission to insure risks in Canada.
  • Would operate in English as “Endurance Specialty Insurance Ltd.” and in French as “Assurances spécialisées Endurance ltée”.
  • Seeks to write business in these classes: property, liability, boiler and machinery, fidelity, automobile, marine, surety, and aircraft.
  • Its head office is in Hamilton (Bermuda). The planned Canadian chief agency is in Toronto. Its ultimate parent is Sompo Holdings, Inc. (Japan).
• KOHO Financial Inc.
  • Intends to ask the Superintendent of Financial Institutions and the Minister of Finance for letters patent under the Bank Act to create a Schedule I bank called KOHO Bank / Banque KOHO.
  • Says the bank would offer deposit and lending products to Canadian residents, for example savings accounts, prepaid cards, and retail loans.
  • Provides a deadline for public objections to be sent to the Office of the Superintendent of Financial Institutions (OSFI) by April 18, 2024.
  • The notice warns that publication does not mean approval; any incorporation depends on the normal review process and the Minister’s decision.

Who's affected#

• Potential customers:
  • Businesses and individuals who buy commercial insurance in the listed classes may face a new insurer if Endurance is approved.
  • Canadians looking for bank accounts, prepaid cards, or small loans could see a new option if KOHO Bank is approved.
• Competitors and partners:
  • Existing insurers, banks, brokers, and fintech firms could be affected by changes in competition or product offerings.
• Regulators and the public:
  • The Office of the Superintendent of Financial Institutions (OSFI) and the Minister of Finance will handle the review and approvals.
• If it’s unclear who is affected:
  • The notices are filings and not approvals. The real reach depends on whether the applications are granted.

Why it matters#

• More choice: If approved, these moves could add new options for insurance buyers and banking customers in Canada.
• Market effects: A new insurer or a new federally chartered bank can affect prices, product features, and competition in their sectors.
• Consumer protection and oversight: Approval would mean these entities operate under Canadian regulatory rules; until then they cannot lawfully carry on the stated business in Canada.
• Public input: The KOHO notice gives the public a formal chance to object before the decision is made (deadline April 18, 2024).