Indemnity National seeks Canadian branch

Summary#

Indemnity National Insurance Company, an insurer incorporated in Mississippi, says it plans to apply to the Superintendent of Financial Institutions for permission to insure risks in Canada. The company intends to file the application on or after October 30, 2023 and would operate under the English name Indemnity National Insurance Company and the French name Société d’assurance indemnité nationale.

What it does#

• The company intends to file an application under the Insurance Companies Act (specifically referring to section 574) asking for approval to insure risks in Canada.
• If approved, it plans to offer property, casualty, and surety insurance in Canada.
• The company’s head office is in Jackson, Mississippi, and its planned Canadian chief agency would be in Toronto, Ontario.
• The notice in the Gazette is dated September 23, 2023 and was submitted by the company’s solicitors, Dentons Canada LLP.
• This is a notice of intent to apply. It is not an approval or a final decision.

Who's affected#

• Canadian businesses and individuals who buy or broker property, casualty, or surety insurance could notice a new insurer entering the market if the application is approved.
• Insurance brokers and agents who place those kinds of risks may see a new option for clients.
• The Office of the Superintendent of Financial Institutions and other regulators will be involved in reviewing the application.
• It is unclear from the notice when, or whether, approval will be granted.

Why it matters#

• If approved, a U.S.-based insurer would be allowed to write certain kinds of insurance in Canada. That could mean more choices for buyers and brokers.
• For businesses that need surety bonds or commercial property/casualty coverage, a new entrant could affect availability and competition, though the notice does not say how large the company’s Canadian operations would be.
• Because this is only an intent to apply, nothing changes yet for customers or policy terms until regulators make a decision.