Marine insurance no longer an exempted class for foreign insurers

Marine insurance is no longer an exempted class of insurance as a result of changes to Part XIII of the Insurance Companies Act, effective Jan. 1, 2010.In a communiqué, the Office of the Superintendent of Insurance (OSFI) says amendments to the act “will remove the exemption that allowed foreign insurers to insure in Canada marine risks without having that class of insurance listed in their order to insure in Canada risks.”As a result, all existing foreign insurers that insure or plan to insure in Canada marine risks are advised that they should apply to OSFI to have their order amended to reflect their marine business and the new legislative requirements.OSFI encourages foreign insurers to apply as soon as possible, since some cases may be more complex and could require some time for OSFI to process.All foreign insurers operating in Canada on a branch basis — including branches that are currently in run off — must ensure that its order reflects the new legislative requirements as of Jan. 1, 2010.