Creation of a new insurance chamber in Quebec — Bill 92’s impact on the insurance sector

On June 3, 2025, Quebec’s legislative body adopted Bill 92, An Act to amend various provisions mainly with respect to the financial sector (the “Act”). The Act will impact nearly every corner of the financial landscape, from insurance and real estate to federation of credit unions and securities. It aims to modernize, simplify and strengthen Quebec’s financial sector framework by amending several laws administered by the Financial Markets Authority (officially known in Quebec as the Autorité des marchés financiers; “AMF”), including the Act respecting the distribution of financial products and services (“ADFPS”) and the Insurers Act. This article is not an exhaustive overview of all the changes introduced by the Act; it primarily concentrates on those related to the Insurers Act.

Creation of the Chamber of Insurance

On July 4, 2025, the Chamber of Financial Security (officially known in Quebec as Chambre de la sécurité financière) and the Chamber of Damage Insurance (officially known in Quebec as Chambre de l’assurance de dommages) will merge into a single entity: the Chamber of Insurance (officially known in Quebec as Chambre de l’assurance).

• This Chamber will take over the functions previously performed by its predecessors, namely the oversight of mandatory continuing education, ethics, and discipline for claims adjusters, financial planners, representatives in life insurance, group insurance, and damage insurance, as well as representatives of mutual fund dealers.
• The Chamber of Insurance will be governed by the Companies Act of Quebec. It will operate as a self-regulated organization. Its recognition is considered granted by Quebec’s financial markets authority, under the Act respecting the regulation of the financial sector (“ARFS”).
• By July 4, 2026, functions related to the oversight of mutual fund savings and scholarship plan dealers will fall out of the Chamber of Insurance’s oversight and are expected to fall under the jurisdiction of the Canadian Investments Regulatory Organisation.

Expanded scope of the Financial Services Compensation Fund

The Financial Services Compensation Fund (officially known in Quebec as Fonds d’indemnisation des services financiers “FISF”), created in 1999, compensates victims of fraud involving financial products or services. The Act repeals the provisions of the ADFPS relating to the FISF and integrates them into the ARFS. Previously limited to victims of certified representatives in certain sectors (insurance, claims adjusting, financial planning, mortgage brokerage, mutual funds, scholarship plans), the FISF’s coverage will expand to cover claims involving a wider range of financial professionals. This includes cases of fraud, fraudulent tactics or embezzlement in relation to financial products and services committed by representatives, dealers, and advisors registered under the ADFPS, the Derivatives Act, and the Securities Act. The Act specifically states that victims of investment dealers and trainees holding a certificate under the ADFPS are now covered by this fund. Ultimately, widening the FISF’s coverage will require a greater number of financial professionals to participate as contributors, thereby strengthening its financial foundation and supporting its continued viability. The AMF will continue overseeing and managing the FISF.

Easing of requirements for claims adjusters

The Act also introduces a targeted easing of requirements for claims adjusters. The AMF could, in exceptional circumstances and for a determined period, allow certain persons to act as claims adjusters even if they do not hold the claims adjuster certificate delivered by the AMF. These persons include certified damage insurance agents or brokers, persons who previously held a claims adjuster certificate, and persons authorized to act as claims adjusters outside Quebec.

Changes to governance and disclosure requirements: Insurance and mutual companies

Amendments to governance and transparency requirements are also introduced in both the ADFPS and the Insurers Act:

• Damage insurance brokerage firms registered with the AMF will have to disclose the name of any financial institution holding an interest exceeding 20 percent of their equity capital, as well as the name of the financial group to which they belong, in their written communications.
• The requirement for insurance companies constituted in Quebec to have 50 percent of their directors residing in Quebec will be reduced to one third if the company belongs to a financial group, collects more than 40 percent of its premiums outside Quebec, so long as the majority of its directors reside in Canada.
• The minimum number of mutual companies required to form or maintain a federation will be reduced from nine to five.
• A legal person constituted outside Quebec may be admitted as an auxiliary member into a federation of mutual companies, with strict governance conditions such as a five-year minimum membership term and limits on voting rights.

New powers for the AMF and the Financial Markets Administrative Tribunal (“TMF”)

The Act will strengthen the powers of the AMF and the TMF. The TMF will have the power to impose administrative monetary penalties for each contravention on those who contravene or aid in the contravention of certain financial sector laws. The possible penal fine amounts for individuals and for other entities will both be increased significantly. More precisely, fines for offences to the Insurers Act will range between $2,000 for lesser violations, and not exceeding $2,000,000 for more important ones (when an offence lasts for more than one day, it constitutes a separate offence for each day it continues). For example, various offences provided in the Insurers Act, such as not providing required information, presenting false or misleading information or participating in fraud, will be subjected to increased fines as per the Act.

The AMF will also be allowed to suspend or withdraw the rights conferred by registration, or impose conditions, if a registrant does not conduct their activities in accordance with their declarations or if they violate the Securities Act or the Derivatives Act. This additional power will harmonize Quebec’s regulation with that of other Canadian regulators. Trading platforms will also have to be recognized by the AMF to carry on activities under the Securities Act and transmit required information.

Conclusion

This Act introduces a number of changes that will affect how insurers operate within Quebec’s regulatory framework. The consolidation of the chambers and the shift toward a principles-based model reflect a broader effort to modernize oversight while fostering public confidence. In this context, the merger of the two chambers into a single entity operating as a self-regulatory organization is likely to transform the current governance model, in line with the legislator’s objective of promoting greater agility and autonomy in governance. For insurers, this means adapting to evolving expectations around governance and compliance.

Most provisions of the Act came into effect on June 4, 2025. However, some provisions will become effective on July 4, 2025, while others will take effect on a date set by regulation or by June 4, 2026, whichever occurs first. Our team will continue to monitor these developments closely.