New Insurance Entrants Apply to Operate in Canada

Summary#

This Canada Gazette notice (published January 9, 2021) lists three separate applications related to insurance businesses seeking approval to operate in Canada. The applications come from Economical Mutual Insurance Company, Privilege Underwriters Reciprocal Exchange / PURE Assurances, and Trupanion, Inc. and ask federal regulators to allow new Canadian companies or a Canadian branch to be set up under the Insurance Companies Act (Canada).

What it does#

• Economical Mutual Insurance Company intends to apply (on or after February 1, 2021) for letters patent to create a Canadian property and casualty insurance company that would:

  • own and operate property and casualty insurance businesses in Canada;
  • provide services to its affiliates; and
  • carry out other activities approved by its board.
  • Proposed legal names: Economical Holdings Corporation (English) and Corporation Holding Économique (French). Head office in Waterloo, Ontario.
  • Objections accepted by Office of the Superintendent of Financial Institutions until March 1, 2021.

• Privilege Underwriters Reciprocal Exchange / PURE Assurances (a Florida reciprocal insurer) intends to file (on or after January 30, 2021) for permission to establish a Canadian branch to insure risks in Canada. It plans to:

  • insure personal-lines property and casualty risks, including property, liability and automobile insurance.
  • use the English name Privilege Underwriters Reciprocal Exchange and the French name PURE Assurances.
  • Canadian chief agency to be in Toronto, Ontario.

• Trupanion, Inc. intends to apply for letters patent to incorporate a Canadian property and casualty insurer under the name GPIC Insurance Company / Compagnie d’assurance GPIC, with head office in North Vancouver, British Columbia. It plans to focus on specialty pet insurance. Objections accepted by Office of the Superintendent of Financial Institutions until February 23, 2021.

Note: Publication of these notices does not mean approval is guaranteed. Approval decisions rest with the federal review process and the Minister of Finance.

Who's affected#

• Customers and businesses in Canada who buy or sell property and casualty insurance, including:
  • people with home, liability or auto insurance if the new entrants begin offering those products;
  • pet owners interested in specialty pet insurance from Trupanion, Inc.’s proposed Canadian insurer.
• Insurance industry participants and brokers who may deal with new Canadian entities or a foreign branch entering the market.
• The federal regulator, Office of the Superintendent of Financial Institutions, and the Minister of Finance, who will review the applications.
• It is unclear from the notices whether current policyholders of the applicants’ existing operations would see immediate changes; details of product offerings and timelines depend on later approvals and filings.

Why it matters#

• New Canadian insurers or foreign insurer branches can increase competition in home, auto, liability and pet insurance. That could affect prices, coverage options, and availability.
• Pet owners might get more options if the proposed GPIC Insurance Company / Compagnie d’assurance GPIC starts offering pet insurance in Canada.
• There is a public window to object to these incorporations or branches; the notices give specific deadlines to raise concerns with the regulator.
• These are preliminary steps — the notices signal intent but do not create legal rights or guarantee that the companies will be allowed to operate in Canada.