Ontario’s Ministry of Finance has launched a consultation on proposed prudent portfolio investment rules for provincially incorporated insurers and other firms.

The Ministry is undertaking a technical consultation with Ontario-incorporated insurers, reciprocals and fraternal societies on proposed changes to insurance legislation that would allow these insurers to operate under investment and corporate governance rules similar to those at the federal level.

The proposed “prudent portfolio” approach would give Ontario’s farm mutual insurance companies and other provincially incorporated insurers greater flexibility in making investment decisions, as well as introduce strong corporate governance requirements, it says.

“The government is working to maintain a strong, sustainable farm sector in Ontario. This consultation is a key step towards improving the competitiveness of companies that serve Ontario’s rural and agricultural communities,” it adds.