For well over a century, hundreds of competing property and casualty (P&C) 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 P&C insurance companies fund a special program, approved by government regulators, to protect policyholders and claimants. In the unlikely event of the failure of a P&C insurer in Canada, the industry-funded, not-for-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, businesses 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 for the liquidation of an insolvent insurer.