Canada's new immigration rules could impact insurance coverage

Temporary resident visas are under scrutiny

Canada's new immigration rules could impact insurance coverage

Insurance News

By Josh Recamara

Canada has introduced new immigration rules allowing officials to cancel temporary resident documents under certain circumstances.  

As announced by Immigration, Refugees and Citizenship Canada (IRCC) on Feb. 12, the changes are part of efforts to regulate temporary immigration and strengthen border security. The updated Immigration and Refugee Protection Regulations, which took effect on Jan. 31 apply to electronic travel authorizations (eTAs), work permits, study permits, and temporary resident visas (TRVs). 

Immigration officials can cancel these documents if a person is found ineligible due to false information, criminal history, or inadmissibility. Other reasons include failure to demonstrate intent to leave Canada at the end of their authorized stay, loss or destruction of a document, transition to permanent residency, administrative errors, or the individual’s death. 

The IRCC stated that foreign nationals entering Canada as visitors, workers, or students must comply with admissibility and eligibility requirements under the Immigration and Refugee Protection Act and its regulations. 

The Canadian government has raised concerns over increased exploitation of temporary resident visas, including student permits, due to organized smuggling networks and global migration trends.  

The new regulations are expected to affect international students, particularly those applying for study permits. In 2025, Canada plans to issue 437,000 study permits to manage international student numbers. Reports indicate that some students failed to enroll in designated institutions, prompting greater scrutiny. 

The changes may have implications for insurance coverage related to travel, health, and education. 

Students and temporary workers often rely on private health insurance, as provincial coverage varies. If a visa is canceled, individuals may lose eligibility for health plans linked to their residency status. Travel insurance providers may also adjust policies to account for increased uncertainty. Legal expense insurance could see rising demand as affected individuals seek recourse. 

Foreign nationals facing visa cancellations may be removed from Canada, denied boarding at airports, refused entry at ports of entry, or experience financial losses if travel tickets are purchased but entry is denied.  

These regulations follow increased oversight of Canada’s temporary residence programs and are expected to impact both individuals and the insurance industry. 

Keep up with the latest news and events

Join our mailing list, it’s free!

IB+ Data Hub

The Ultimate Data Intelligence Platform for Insurance Professionals

Unlock powerful dashboards and industry insights with IB+ Data Hub—your essential subscription for data-driven decision-making.