What Does Property and Casualty Insurance Compensation Corporation (PACICC) Mean?
The Property and Casualty Insurance Compensation Corporation (PACICC) is a Canadian organization that is geared to protecting insurance policyholders from the risk of their insurer becoming insolvent. This not only protects individual policyholders but also improves consumer confidence levels for Canadian insurers, as well as the insurance market at large.
Insuranceopedia Explains Property and Casualty Insurance Compensation Corporation (PACICC)
An insurance company becoming insolvent can be devastating for their policyholders. They can lose their insurance coverage and scramble to find insurance coverage, and may struggle to find a policy with comparable terms (such as premium discounts for going claims-free for some years, specially negotiated rates, and policy inclusions).
An insurance company going bust also leaves their policyholders vulnerable. Until they acquire a new policy, they are unable to file claims and have them reimbursed. They will, in other words, bear the full weight of any loss they incur during that period.
The PACICC has been established to combat this and protect property and casualty policyholders from this fallout.