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The Ontario Municipal Insurance Exchange (OMEX) is a not-for-profit reciprocal insurance exchange owned and governed by Ontario municipalities. Reciprocal Insurance Exchanges are contractually-based risk sharing arrangements. Reciprocals are not corporations, partnerships, or proprietorships, however, they are licenced insurance companies governed by the Insurance Act. When joining a reciprocal, the new subscriber must sign a Reciprocal Agreement which outlines the obligations assumed by all parties and the legal basis upon which the reciprocal operates. This is the governing document of the risk sharing arrangement. OMEX is devoted exclusively to providing Ontario municipalities with a complete insurance program at costs that reflect the costs of claims. Since OMEX specializes solely in municipal risks, major claims and disasters in other industries do not adversely affect the premiums of its members. OMEX was created in 1986 by a group of Toronto-area municipalities in an attempt to collectively take control of their insurance requirements and escalating insurance costs. The pooling arrangement was so successful that in 1989 OMEX secured a license to operate as an insurer from the Ontario Superintendent of Insurance (now known as the Financial Services Commission of Ontario). OMEX has now built a successful core organization and is expanding its benefits and services to municipalities throughout Ontario. Our emphasis on stable costs, risk management and member-focused initiatives ensures that OMEX is an attactive alternative to the traditional municipal insurance markets.
OMEX is Ontario's only Municipal Insurance Reciprocal. Together we are stronger!
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