On October 27, 2021, proposed legislation was tabled in Alberta
to allow for the formation of captive insurers.
What you need to know
- Captive insurers typically underwrite related party risks and
are subject to lower capital requirements and prudential
supervision than an authorized insurer.
- The Superintendent of Insurance (Alberta) will be responsible
for the licensing and on-going supervision of Alberta
captives.
- Financial management and corporate governance requirements are
set out in the proposed legislation.
- An Alberta captive must have a principal place of business in
Alberta.
What are the opportunities?
Bill 76 was introduced to address what has been a persistent
hard insurance market which is challenging business and other
organizations in finding adequate insurance protection. A captive
insurer may serve as an efficient risk management and risk
retention vehicle, whether for commercial or industrial
enterprises, associations, or other
