Bill would allow captive insurers in Alberta
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A bill introduced in the legislative assembly of Alberta on Wednesday would allow for the formation of captive insurers in the Canadian province.
Bill 76, the Captive Insurance Companies Act, was introduced by Alberta minister of finance Travis Toews.
“Current global insurance supply constraints are making it difficult for many commercial entities to get adequate coverage at a reasonable price,” Mr. Toews said in a press conference introducing the legislation.
Allowing alternative insurance options, such as captive insurance, would support an increase in capital investment and job creation in the province and ultimately help diversify the economy and benefit a wide variety of different companies and sectors, Mr. Toews said.
Energy and large construction companies, members of an association such as an industry group, utilities, project partnerships or economic development corporations, and large public entities, are among those most likely to take advantage, Mr. Toews said.
Captive insurers would be regulated by the Alberta superintendent of insurance and subject to capitalization and solvency requirements, he said. Details will be rolled out in spring 2022.
“We’re taking a look at other jurisdictions such as British Columbia, Vermont and other jurisdictions in the world for appropriate capitalization and regulatory requirements,” Mr. Toews said.
British Columbia is currently the only jurisdiction in Canada to allow captive insurance.
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