Alberta Legislation Would Create Second Canadian Captive Domicile

Legislation recently introduced in Alberta would allow the formation of captive insurance companies in the Canadian province.

Under the legislation, Bill 76, captive insurance companies would be allowed, among other things, to insure not only the risks of their parents but also members of associations.

Alberta government officials say the legislation is needed to help businesses get insurance coverage at a lower cost compared to the traditional market.

"Enabling captive insurance is an important step to attract businesses and insurance capacity to the province. This will help increase options for insurance business, while helping sustain economic activity and jobs," Travis Toews, Alberta's president of Treasury Board and minister of finance, said in a statement.

"This change will make Alberta a world-class insurance and reinsurance hub," Ian Matheson, chief consulting officer at IRGM GLOBAL Risk Management Consultants Limited, also said in a statement.

Currently, British Columbia is the only Canadian province to allow the formation of captive insurance companies.