Table of contents

Status: Bill 76 passed third reading on November 25, 2021
Ministry responsible: Treasury Board and Finance


Bill 76: the Captive Insurance Companies Act 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.

Challenges with global insurance supply are making it difficult for commercial entities in Alberta to find adequate insurance at reasonable prices. Captive insurance could help business entities having trouble finding appropriate coverage in the current insurance market.

About 70 jurisdictions around the world have captive legislation, including British Columbia, Vermont and Delaware. Alberta’s legislation was developed using global best practices. Rules to ensure sound financial and corporate governance will be outlined in regulations that are expected to be announced in 2022.

Key changes

Bill 76: the Captive Insurance Companies Act:

  • outlines the rules necessary for forming, operating and dissolving a captive insurer in Alberta
  • provides requirements to ensure captive insurance companies are conducting business according to sound financial and corporate governance principles
  • specifically requires a captive insurance company to be physically located in Alberta to ensure the province sees all the economic benefits of this new activity
  • allows 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

Bill 76: the Captive Insurance Companies Act will take effect upon proclamation. The ability to set up a captive would be available once related regulations come into effect, expected in 2022.


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