Canada’s Department of Finance has issued long-awaited draft regulations for the demutualization of Canadian property and casualty insurance companies.
Available online on the Canada Gazette website on Feb. 27, there are two sets of draft regulations, one for insurers with only mutual policyholders and one for insurers with both mutual and non-mutual policyholders.
Economical Insurance in Waterloo, Ont. welcomed the announcement as a “significant milestone,” noting that these regulations are needed to allow p&c companies that wish to change their corporate structure to become companies with share capital. Regulations have now been released in draft form and are subject to a comment period that ends on March 30.
Once final regulations have been declared in force, companies may formally begin the demutualization process.
Canadian Underwriter – Feb 27, 2015
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