Foresters Indemnity continuance; Hagelunie Canadian branch

Summary#

Two short notices. Foresters Indemnity Company says it will apply to be continued as a federal corporation under the Canada Business Corporations Act (application to the Superintendent of Financial Institutions (Canada) on or after March 31, 2020). N.V. Hagelunie, a Netherlands-based insurer, says it will apply to establish a Canadian branch and to insure property and hail risks in Canada (application on or after March 15, 2020 under the Insurance Companies Act).

What it does#

• Foresters Indemnity Company intends to ask federal regulators for permission to become a corporation under the Canada Business Corporations Act.
• N.V. Hagelunie intends to apply for an order allowing it to insure risks in Canada under the name Hagelunie. It plans to offer property and hail insurance. Its head office is in the Netherlands and it will have a Canadian chief agency in Toronto, Ontario.

Who's affected#

• Customers, brokers and businesses that deal with property or hail insurance could be affected if Hagelunie starts writing policies in Canada.
• Stakeholders of Foresters Indemnity Company — such as policyholders, employees, creditors and regulators — are the main parties affected by its plan to continue as a federal corporation.
• These are notices of intended applications. They do not say the applications have been approved.

Why it matters#

• If approved, Foresters Indemnity Company would change its corporate status to a federal corporation, which can affect how it is governed and regulated.
• If Hagelunie gets approval, there could be a new option for property and hail insurance in Canada, which may mean more competition or different coverage choices for customers.
• These notices are the formal public heads-up that the companies will seek regulatory approval; they are not final decisions.