Diversifying Alberta’s insurance sector

Taking action to diversify and improve insurance availability in Alberta.

Status: Bill 16 received royal assent on May 31, 2022.
Bill 76 received royal assent on December 2, 2021.
Ministry responsible: Treasury Board and Finance


We are committed to easing insurance shortages and high prices by expanding insurance options. Legislation changes will help increase insurance supply in the province.

The Insurance Amendment Act, 2022 (formerly Bill 16) increases insurance capacity in the province by facilitating access to reinsurance and smooth relocation of Alberta owned captive insurance companies to the province.

The Captive Insurance Companies Act (formerly Bill 76) enables the formation of captive insurers as an alternative to the traditional insurance market to help relieve cost and availability pressures on Alberta businesses.

Captive insurance is an “in-house” insurance solution created and owned by an industrial, commercial or financial entity that can offer services when traditional insurers are unable to provide necessary coverage. A reinsurance company assumes the risk of insurance companies, including captive insurance.

Key changes: Bill 16

The Insurance Amendment Act (formerly Bill 16) amends both the Insurance Act and the Captive Insurance Companies Act to:

  • add new reinsurance provisions to allow provincially licensed insurance companies to focus solely on reinsurance and to enter into limited partnerships to raise capital
  • reduce the current regulatory charge for purchasing unlicensed insurance from 50% of the premium payable for unlicensed insurance to 10%
  • reduce the 50% financial penalty for the late payment of all charges and tax on unlicensed insurance, to 10%
  • align the Insurance Act with new regulatory standards and comparable federal legislation
  • change improper references to other provisions of the Insurance Act to remove requirements and sections of the Act that are no longer necessary
  • add new ‘redomestication’ provision to specifically address relocation of foreign captives to Alberta

Key changes: Bill 76

The Captive Insurance Companies Act (formerly Bill 76) was passed in December 2021 to:

  • outline the rules necessary for forming, operating and dissolving a captive insurer in Alberta
  • provide requirements to ensure captive insurance companies are conducting business according to sound financial and corporate governance principles
  • specifically require a captive insurance company to be physically located in Alberta to ensure the province sees all the economic benefits of this new activity
  • allow Alberta-licensed captives to insure risks of a single entity (a company), members of an association (an industry group) or a knowledgeable client with complex insurance needs

Next steps

Ministerial order and directive

These are effective July 1, 2022 (posted June 9, 2022):