North American Specialty to Open Canadian Branch

Summary#

North American Specialty Insurance Company plans to apply to the Superintendent of Financial Institutions to open a Canadian branch and to be allowed to underwrite many types of insurance in Canada. The company says it will file the application on or after February 21, 2022 and may later change its name to Swiss Re Corporate Solutions America Insurance Corporation (subject to U.S. approval).

What it does#

• Files an application under section 574 of the Insurance Companies Act to get permission to insure risks in Canada across many classes, including property, accident and sickness, aircraft, automobile, boiler and machinery, credit, fidelity, hail, liability, marine and surety.
• Establishes a new Canadian branch. The parent company’s head office is in Kansas City, Missouri, and the planned Canadian chief agency would be in Toronto, Ontario.
• Transfers the Canadian operations currently run by Westport Insurance Corporation’s Canadian branch into the new branch, if the Canadian regulator approves the move.
• Plans a corporate name change (pending U.S. regulatory approval) to Swiss Re Corporate Solutions America Insurance Corporation, which would also be the name used in Canada.
• The notice is dated January 21, 2022.

Who's affected#

• Customers who currently buy insurance from Westport Insurance Corporation in Canada, or who might buy the listed types of insurance from the new branch.
• Businesses and individuals needing commercial lines like property, liability, marine, automobile, aircraft, and surety coverage.
• Employees and service partners of Westport’s Canadian operations may be affected if operations move to the new branch.
• The general public only indirectly: this is a corporate and regulatory matter unless and until policies or service arrangements change.

If the notice is unclear about who else might be affected, that is because the final impact depends on whether regulators approve the application and the planned transfer.

Why it matters#

• If approved, policies now handled by Westport’s Canadian branch could be issued by a different legal entity. That can affect contract names, where regulatory oversight sits, and how claims or notices are processed.
• A name change to Swiss Re Corporate Solutions America Insurance Corporation would change branding on policies and communications.
• The move could increase or reorganize competition in several commercial insurance markets in Canada.
• Nothing in this notice is final: the changes require Canadian and, for the name change, U.S. regulatory approvals before they take effect.