Legislative assembly

Bill would allow captive insurers in Alberta

A bill tabled in the Alberta legislature on Wednesday would allow the formation of captive insurers in the Canadian province.

Bill 76, the Captive Insurance Companies Act, was introduced by Alberta Finance Minister Travis Toews.

“The current constraints of the global insurance supply make it difficult for many business entities to obtain adequate coverage at a reasonable price,” Toews said at a press conference outlining the legislation.

Allowing alternative insurance options, such as captive insurance, would support increased capital investment and job creation in the province and ultimately help diversify the economy and benefit a wide variety of people. different companies and industries, Toews said.

Large energy and construction companies, members of an association such as an industrial group, utilities, project partnerships or economic development companies, and large public entities, are among the most likely to ‘enjoy it,’ Toews said.

Captive insurers would be regulated by the Alberta Superintendent of Insurance and subject to funding and solvency requirements, he said. Details will be revealed in spring 2022.

“We are looking at other jurisdictions such as British Columbia, Vermont and other jurisdictions around the world for the appropriate regulatory and funding requirements,” said Mr. Toews.

British Columbia is currently the only jurisdiction in Canada to allow captive insurance.

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