PACICC Seeks to Incorporate Standby Insurer

Summary#

Property and Casualty Insurance Compensation Corporation (PACICC) says it plans to apply for letters patent under the Insurance Companies Act (Canada) to create a new insurer called PACICC-SIMA General Insurance Company / Compagnie d’Assurance Générale PACICC-SIMA. The new company would be based in Toronto, Ontario, and would not do any business unless the PACICC board decides it is needed. Objections must be sent to Office of the Superintendent of Financial Institutions (OSFI) by October 22, 2024.

What it does#

• Seeks formal permission (letters patent) to incorporate a property and casualty insurance company named PACICC-SIMA General Insurance Company / Compagnie d’Assurance Générale PACICC-SIMA.
• Sets the company’s head office in Toronto, Ontario.
• States the company “will not carry on any business unless and until required in certain special circumstances,” as decided by the PACICC board.
• Opens a window for objections to be filed with OSFI by October 22, 2024.

Who's affected#

• PACICC and its board are directly involved.
• The Office of the Superintendent of Financial Institutions (OSFI) and the Minister of Finance, who will review the application.
• People or organizations who want to object (policyholders, industry participants, others) — they must contact OSFI by October 22, 2024.
• It is unclear from the notice exactly which everyday policyholders or businesses would be affected in practice, because the company is intended to remain inactive unless special circumstances arise.

Why it matters#

• This creates a ready-to-use insurance company that PACICC can activate if the board determines it’s needed.
• That could matter in rare or urgent situations where PACICC needs a vehicle to step in or respond quickly.
• The notice does not guarantee the company will be approved or used; it only starts the formal application process and allows the public to object by October 22, 2024.