01 · Regulation
How is insurance regulated in Canada?
Two levels of licensing and thirteen separate jurisdictions.
Short answer
Insurers can be licensed federally (supervised by OSFI) and/or provincially. Market conduct, policy wording and broker licensing are set by each province and territory.
A
Two levels
Insurers can be licensed federally (supervised by OSFI) and/or provincially. Market conduct, policy wording and broker licensing are set by each province and territory.
B
Every jurisdiction is separate
An insurer or broker licensed in one province is not automatically licensed in another. Plan for each place you hire staff, hold property, run vehicles or sell.
C
Use a licensed Canadian broker
Use one registered where your risks sit. A Canadian broker on the placement also simplifies federal tax treatment (see the tax trap).