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ARTICLE · 23 JULY 2025

End Of Coverage: How To Properly Close Your Insurance Business In Canada

McMillan LLP
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For foreign insurance companies operating in Canada, terminating its insurance business in Canada comes with various regulatory requirements.

CanadaInsurance
Christopher Garrah
Christopher Garrah
David Zhang
David Zhang
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For foreign insurance companies operating in Canada, terminating its insurance business in Canada comes with various regulatory requirements. Foreign companies closing a Canadian branch, whether it decides to have its policies reinsured by a third-party or to simply wind down its business, will need the approval of the Office of the Superintendent of Financial Institutions ("OSFI") in order to release its assets in Canada. This bulletin will provide transactional guidance in navigating OSFI's guidelines to obtain approval to terminate a Canadian insurance business under Section 650 of Canada's Insurance Companies Act (the "Act").

Requirements

1. Dealing with Liabilities of the Canadian Insurance Business

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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