ARAG Canada to establish insurance company

Summary#

ARAG Canada Holdings Ltd. says it will apply to create a new Canadian insurance company under the Insurance Companies Act. The new company would sell legal expenses insurance and related products and would be based in Toronto, Ontario; the application is planned for on or after October 4, 2026.

What it does#

• Asks the federal government to issue letters patent to incorporate a new insurer that would operate in Canada.
• The proposed insurer would use the legal names ARAG Canada Insurance Ltd. (English) and Compagnie d’assurance ARAG du Canada ltée (French).
• It says the new company would carry on business in the classes of legal expenses insurance and “other approved products” in Canada.
• Gives the public a chance to object in writing to the Office of the Superintendent of Financial Institutions at 255 Albert Street, Ottawa, Ontario K1A 0H2, on or before November 3, 2026.
• Notes that publication of the notice does not mean the letters patent will definitely be issued; the final decision rests with the Minister of Finance after the usual review.

Who's affected#

• People who buy or sell legal expenses insurance in Canada (policyholders and brokers).
• Competing insurance companies and firms that offer similar products.
• Policyholders who might gain access to a new insurer or see changes in choice or price.
• The federal regulator, Office of the Superintendent of Financial Institutions, and the Minister of Finance, who will review the application.

Why it matters#

• A new insurer could increase options for people seeking legal expenses coverage, which can help pay for lawyers or legal costs in disputes.
• More competition can affect prices, product features, and availability in the market for legal expenses insurance.
• This is an application stage, not a final approval — the public can object until November 3, 2026, and the government may still refuse the incorporation.