Another step forward was taken in the push to allow the demutualization of federally regulated mutual property and casualty insurance companies, with the passage of Bill C-31.
For particular insurer, it is good news indeed.
“We are pleased that this step in the development of a federal demutualization framework is complete,” said John Bowey, chair of Economical’s special committee on demutualization. “Now that the budget implementation bill has been enacted, the next step would be for the Department of Finance to release draft demutualization regulations, which are expected to be subject to a public comment period before coming into force.
Economical Mutual Insurance Company has been at the forefront of moving forward Bill C-31, the 2014 budget implementation bill, which amends the Insurance Companies Act (Canada) (ICA) to broaden the Governor in Council’s regulation-making authority under the act.
These powers support the eventual implementation of the regulations that will allow federally regulated mutual property and casualty (P&C) insurance companies that choose to do so to demutualize.
“At that point,” said Bowey, “Economical’s board of directors will be in a position to determine whether demutualization within the final regulatory framework would be in the best interests of the company.”
Founded in 1871,
Economical Insurance is one of Canada’s leading property and casualty insurers, with $1.9 billion in annual premium volume and $5 billion in assets, conducting business under the brand names:
Economical Insurance, Economical, Western General, Economical Select, Perth Insurance, Family Insurance Solutions, Federation Insurance and Economical Financial.
The Economical recently reshuffled its leadership team in Western Canada, appointing Cheryl Edmunson, Chris Weber and Graham Doerr to new senior management roles.
