Mr. Speaker, Canada has 106 mutual property and casualty insurance companies that were set up by farmers over 100 years ago at a time when it was very difficult for them to find insurance at a reasonable cost.
As a result of action taken by external sources, the Economical Mutual Insurance Company announced its intention to demutualize last December. Because there is no process in place for property and casualty insurers, the Minister of Finance will be asked to consider draft regulations.
The Canadian Association of Mutual Insurance Companies is strongly opposed to professional consultants, brokers, directors, officers and selected staff from getting a windfall from the demutualization. Furthermore, in the case of Economical, a small minority of policyholders stands to share in the whole value of the company. This is wrong and should not be allowed.
I call on the Minister of Finance to give significant consideration to how value should be distributed during the demutualization of a property and casualty insurance company with the objective of finding fairness for all.