Oct. 6, 2025 — Canada’s p&c policyholder protection provider says gaining new bridge insurer capability is a significant milestone for the organization.

The Property and Casualty Insurance Compensation Corp. reported in its latest Solvency Matters newsletter that it has now been authorized by the federal government to establish an entity that would be used to temporarily manage the assets and liabilities of an insurer in financial distress to protect policyholders.

It will be known as PACICC-SIMA General Insurance Co., or by the abbreviation PGIC.

The plan is for PGIC to lie dormant as a shell entity until needed. Any decision to activate PGIC will require a consensus decision of PACICC’s board of directors, the federal Office of the Superintendent of Financial Institutions and relevant provincial regulators.

PACICC has been exploring the idea of establishing a bridge insurer since 2020 and it approved the initiation of the application process in 2023.

Among factors guiding its decision was the fact that its sister organization in the life insurance sector in Canada, Assuris, already has its own bridge insurer, CompCorp Life Insurance Co.

The PACICC board also took note that the International Association of Insurance Supervisors recommends that an effective insurance resolution framework should include bridge insurer capability.

PACICC said it has been monitoring other jurisdictions where bridge insurers have been used and cited a recent case in Korea.

That country’s 10th largest p&c insurer, MG, was declared insolvent in 2022. Earlier this year, its remaining policy contracts were transferred to other major firms via a bridge insurer operated by the state-run Korea Deposit Insurance Corp.

“PACICC will continue to monitor this file and others worldwide to advance our understanding about how our board could employ our new bridge insurer capability in a crisis,” PACICC said. 

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