For well over a century, hundreds of competing property and casualty insurance companies in Canada have honoured millions of claims – amounting to billions of dollars – promptly, and in full. Insurance company failures, although rare, can and do occur. That’s why Canada’s property and casualty (P&C) insurance companies fund a special program, approved by government regulators, to protect policyholders and claimants. In the unlikely event of the collapse of a P&C insurer in Canada, the industry-funded, non-profit Property and Casualty Insurance Compensation Corporation (PACICC) will respond to claims of policyholders under most policies issued by P&C companies. You don’t need to apply for protection; it is extended automatically to eligible policies. Members of PACICC are the private companies which insure the homes, cars, business and other property of Canadians. As part of its preparedness, PACICC maintains a liquidity fund that is sufficient to cover the early cash flow requirements of an insolvent insurer. PACICC’s mission is to protect eligible policyholders from undue financial loss in the event that a member insurer becomes insolvent. We work to minimize the costs of insurer insolvencies and seek to maintain a high level of consumer and business confidence in Canada’s property and casualty insurance industry through the financial protection we provide to policyholders.
