“The introduction of captive insurance in Alberta provides businesses with another option for insurance coverage and makes Alberta a more attractive destination for investment.
“Alberta’s business-friendly environment continues to prove itself, offering a unique advantage for businesses seeking effective risk solutions in a challenging global insurance market. I am proud that we are one of only two provinces to provide the captive insurance option. Since becoming a captive jurisdiction in 2022, Alberta has licensed 17 captive insurance companies and is prepared to welcome more.
“Furthermore, it provides an additional insurance option for businesses that may struggle to find the right coverage at a manageable cost through traditional insurance providers. As more captives are established in Alberta, we expect to see a growing hub of specialized skills, including experts like captive managers and actuarial services.
“After less than two years, Alberta’s captive insurance program now rivals those found in already established and globally recognized captive jurisdictions like Barbados, Bermuda and Vermont. In fact, only a few months after legislation was passed, a captive insurance company moved from Barbados to Alberta.
“In conversations I’ve had with folks from industries such as hospitality, transportation, construction and farming, companies are choosing Alberta as their captive jurisdiction for several reasons, including our six-week turnaround time for licence approvals and low costs that are more favourable than accessing offshore captives.
“In addition, Alberta’s captive insurance program allows companies to cover business risks from outside the province within Alberta. Companies have also told us they have an easier time navigating our captive regulation because Alberta’s Superintendent of Insurance is easily reachable, responsive to feedback and prudent in its reviews.
“With ongoing interest from diverse industries, Alberta’s government will continue to ensure that our captive insurance environment thrives and that businesses view Alberta as a top destination for risk management.”
- Diversifying Alberta’s insurance sector (April 19, 2022)