Difference between the P&C and life insurance demutualization processes
Economical is the first company to demutualize under the regulations enacted by the federal government for P&C insurance companies. As a P&C insurance company with both mutual and non-mutual policyholders, Economical must follow a four-phase process that is far more complex than any others before us.
In comparison, a large Canadian life insurance company (Lifeco) could demutualize using a single phase process, that:
- did not require a court process,
- had the company determine the allocation, without committee negotiations, and
- had only a vote at one special meeting of policyholders
As a result, the time to successfully complete the life insurance process was far shorter. Here is a comparison of how the timing of our demutualization so far compares with life insurance company demutualizations.
Hover over an activity on our critical path timeline to get more details
The process we must follow is as complex and as it is unique. It requires broad stakeholder participation and has a number of procedural checks and balances which make it a much lengthier process than a Lifeco demutualization. You can read more about the process we have to follow here.