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ARTICLE · 17 JANUARY 2025

Alberta's Captive Insurers Gain Reinsurance Flexibility For Third-Party Risks

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On December 12, 2024, Alberta's Superintendent of Insurance ("Superintendent") released a Bulletin providing a new interpretation of sections 27 and 28 of the Captive Insurance Companies Act ("Act")...

CanadaInsurance
Darcy Ammerman
Darcy Ammerman
Mathurhaen Siri
Mathurhaen Siri
Marie Liang (Summer Law Student)
Marie Liang (Summer Law Student)
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On December 12, 2024, Alberta's Superintendent of Insurance ("Superintendent") released a Bulletin providing a new interpretation of sections 27 and 28 of the Captive Insurance Companies Act ("Act"), which came into force on July 1, 2022. For more information on captive insurers generally and the emergence of the Act, please consult our previous publication.

Background Information

Sections 27 and 28 fall under Division 2 "Permitted Business of a Captive Insurance Company" of the Act.

  • Section 27 outlines the scope of eligible insured risks, limiting a captive insurer to covering the risks of "persons prescribed".

For (a) a pure captive insurance company, these persons include its parent and their affiliates; for (b) an association captive insurance company, these include its association, the members of its association and their affiliates and for (c) a sophisticated insured captive insurance company, these include the sophisticated insureds that comprise

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2025

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