What happens to your policy if your insurer fails?

Insurers rarely fail, but if one does, two industry-funded backstops protect Canadian policyholders.

Assuris (life & health)

If a member life insurer becomes insolvent, your coverage is transferred to a solvent insurer, and Assuris guarantees at least:

• the greater of $1,000,000 or 90% of your death benefit;
• $250,000 or 90% of health expenses;
• $5,000/month or 90% of monthly income (annuity/DI);
• $100,000 or 90% of cash/segregated-fund value.

Most Canadians' policies are fully protected.

PACICC (property & casualty)

If a member home/auto insurer fails, PACICC covers unpaid claims up to $500,000 for personal property claims and $400,000 for most other lines, and refunds 70% of unearned premium to a $1,750 maximum.

What this means for you

You don't need to obsess over an insurer's financial strength for coverage within these limits — the backstops exist. For very large policies (a death benefit above $1M), spreading coverage across two insurers keeps everything within the guarantee.

Verified July 2026 against assuris.ca and pacicc.ca.