Alberta claims it now rivals Bermuda, Barbados and Vermont as a captive domicile

Alberta has licensed 17 captive insurances companies in just two years and now rivals more established jurisdictions, the Canadian province’s finance minister has claimed. 

In a statement last week, Nate Horner (pictured) credited the province’s six-week turnaround time for licence approvals and low costs as key reasons for its success since the introduction of captive insurance in 2022. 

“I am proud that we are one of only two provinces to provide the captive insurance option,” Horner said. “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.

“After less than two years, Alberta’s captive insurance programme now rivals those found in already established and globally recognised 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.”

Horner attributed the success to the province’s business-friendly environment.

“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,” he said. 

“In addition, Alberta’s captive insurance programme 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.”

Horner said he was hopeful the growth of the industry would lead to an increase in service sectors as well. 

“As more captives are established in Alberta, we expect to see a growing hub of specialised skills, including experts like captive managers and actuarial services,” he said, adding: “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.”

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