Alberta’s captive insurance program has played a key role in enhancing its appeal as an investment destination, according to Nate Horner, the province’s finance minister.
In a recent statement, Horner said the program has been especially beneficial for businesses facing challenges securing suitable coverage from traditional insurers.
“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,” he said.
Alberta implemented its captive insurance program in 2022. Since then, it has licensed 17 captive insurance companies. It is also one of only two provinces in Canada offering such an option to businesses.
“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,” Horner added. “In fact, only a few months after the legislation was passed, a captive insurance company moved from Barbados to Alberta.”
Further in his statement, Horner said he has spoken to individuals in the hospitality, transportation, construction, and farming sectors on why they chose Alberta as their captive jurisdiction.
According to Horner, the reasons cited in these conversations include Alberta’s “six-week turnaround time for licence approvals and low costs that are more favourable than accessing offshore captives.”
Horner also pointed to the program’s flexibility, with companies being allowed to cover business risks 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,” he said.
Alberta launched its captive insurance regime after legislators passed a bill allowing Canadian employers to form captive insurance companies domiciled in Alberta and gain access to alternative risk solutions at lower costs.
What are your thoughts on this story? Feel free to comment below.
