GreenShield paves the way for a new insurance company

A miscellaneous notice published in the Canada Gazette on June 15, 2024, reveals that GreenShield Canada (GSC) will request permission from the Minister of Finance to reinsure virtually all its liabilities through GreenShield Canada Insurance (GCI).

One of the companies under the GreenShield brand, GSC plans to make this request on or after July 16, 2024, according to the Canada Gazette. However, it will have to wait for the minister to approve the creation of GreenShield Canada Insurance, which was initially requested of the minister in May 2021.

A footnote to the notice states that the Superintendent of Financial Institutions has not yet ordered the accreditation of its operation. The Minister's green light for what the notice calls "the reinsurance agreement for the purposes of assumption of liability" is conditional on this order. 

Unifying the structure 

GreenShield's structure is complex. It consists of three non-profit entities: GreenShield Canada (GSC); GreenShield Association (GSA); and GreenShield Canada Foundation. This structure also includes GSA's subsidiaries, such as GreenShield Health and GreenShield Administration. 

If GreenShield receives all regulatory approvals, it will be able to "unify the GreenShield companies, namely GreenShield Insurance, GreenShield Administration, and GreenShield Health under a single non-profit parent entity, namely the GreenShield Association (GSA)," according to responses provided to the Insurance Portal by Katherine Miller Rowan, Director of Public Relations at Exacto Communications. 

Transferring claims 

The spokesperson adds that the future company, GreenShield Canada Insurance (GCI), will be one of the entities under the parent entity, GSA. While awaiting approval from the Ministry of Finance for GreenShield Canada Insurance, GreenShield Canada will transfer its health and dental claims reimbursement activities to GCI, she explains. 

In its 2019 strategic plan, GreenShield set the goal of becoming the main integrated provider-payer in Canada. GreenShield has since acquired several service providers. Unifying its companies will allow GreenShield "to continue simplifying access to care, removing administrative barriers, and improving health outcomes for our clients," emphasizes its spokesperson.