Canada’s life and health insurance industry has evolved significantly over the past two decades, with insurers becoming larger, more interconnected, and increasingly active across international markets. As the industry continues to evolve, so too must the frameworks that support policyholder protection and financial stability.
To contribute to this discussion, Assuris has submitted recommendations to the Government of Canada as part of the 2026 pre-budget consultation process. The submission recommends establishing a special insurance resolution regime for life and health insurers and designating Assuris as the resolution authority under such a framework.
While insurer failures remain rare, many jurisdictions have introduced modern resolution frameworks that provide authorities with tools to manage a failing insurer in an orderly manner, helping to protect policyholders, preserve market confidence, and support financial stability. Canada’s current approach remains primarily court-based and triggered at insolvency which is not adequate for the resolution of a large, complex, and internationally active insurer.
Assuris’ submission proposes a framework that would complement existing insolvency processes by introducing an out-of-court resolution regime and a designated resolution authority. Such a framework would:
- support earlier intervention,
- facilitate continuity of critical insurance functions,
- strengthen coordination with domestic and international authorities,
- and enable advance resolution planning for insurers whose failure could have broader financial system implications.
The proposed approach would also maintain Canada’s longstanding industry-funded model, avoiding taxpayer exposure.
The recommendation builds on Assuris’ more than 35 years of experience protecting policyholders and supporting life and health insurer resolution activities in Canada. Through its work with member companies, regulators, the federal government, international organizations, and insurance guarantee schemes in other jurisdictions, Assuris has continued to advance resolution preparedness and planning initiatives designed to strengthen Canada’s insurance safety net.
A modern insurance resolution framework cannot be created during a crisis. It requires careful planning, collaboration, and legislative development well in advance of the need for its use. Assuris believes that beginning this work now will strengthen Canada’s economic resilience, enhance protection for policyholders, and help ensure Canada’s insurance resolution framework remains aligned with evolving risks and international best practices.
