What Is Assuris?
Assuris is a not-for-profit organization that protects Canadian policyholders if their life insurance company fails. It is the insurance industry's equivalent of CDIC (for bank deposits) or CIPF (for investment dealer accounts). All life insurance companies licensed to operate in Canada are required to be Assuris members.
Assuris Coverage for Segregated Funds
If a member insurance company becomes insolvent, Assuris guarantees that segregated fund policyholders will retain at least:
| Benefit Type | Minimum Coverage |
|---|---|
| Accumulation value (cash value) | Higher of 85% of value or $60,000 |
| Monthly income benefits | Higher of 85% of income or $2,000/month |
| Death benefits | Higher of 85% of benefit or $60,000 |
| Health expense benefits | Higher of 85% of benefit or $60,000 |
Assuris vs CDIC vs CIPF
| Protection | Covers | Limit | Applies To |
|---|---|---|---|
| CDIC | Bank deposits, GICs | $100,000 per category | Banks, trust companies |
| CIPF | Securities, cash in brokerage | $1,000,000 per account type | Investment dealers (IIROC members) |
| Assuris | Insurance contracts, seg funds | 85% or $60,000 (higher of) | Life insurance companies |
How Likely Is Insurance Company Failure?
Canadian life insurance companies are among the most heavily regulated and well-capitalized financial institutions in the world. OSFI (Office of the Superintendent of Financial Institutions) imposes strict capital requirements and conducts regular stress testing. The last significant Canadian life insurer failure was Confederation Life in 1994 — over 30 years ago — and policyholders were largely made whole through the transfer of business to other insurers.
The probability of a major Canadian insurer failing is extremely low, but Assuris provides a backstop for the unlikely event. For investors with large seg fund holdings (over $60,000), the 85% coverage means some assets could theoretically be at risk. Diversifying across multiple insurance companies eliminates this residual risk entirely.
Maximizing Protection
For high-net-worth investors using segregated funds for creditor protection or probate planning, consider spreading holdings across 2-3 insurance companies to ensure full Assuris coverage on each contract. This is analogous to spreading GIC holdings across multiple banks to maximize CDIC coverage.