GI-2026-42-reg3: Non-Financial Activities (Insurance Companies, Societies and Insurance Holding Companies) Regulations

Insurance companies, societies, and insurance holding companies — particularly larger ones with equity of $12 billion or more — face new limits on how much non-financial activity revenue they can generate (capped at 10% of annual revenue for large insurers, 15% for smaller ones) and must keep related investments under 10% of regulatory capital. Large insurers must also file detailed disclosure reports to the Department of Finance within 30 days of acquiring control or a substantial investment in a non-financial entity, plus annual reports within six months of each financial year-end. Insurers are prohibited from offering short-term personal property rental (e.g., vehicle leasing not tied to financing) in Canada. A two-year transitional exemption provides breathing room for existing activities conducted outside Canada or through legacy IT subsidiaries.