The Alberta government has proposed legislation to increase the province’s insurance capacity..Finance Minister Travis Toews tabled the Insurance Amendment Act in the Alberta legislature on Tuesday afternoon..If adopted, the bill would provide consumers with more options with the ultimate goal of lowering costs. .“We’re delivering a regulatory framework that will help generate more insurance activity right here in Alberta — leading to more opportunities for Albertans in sophisticated finance and insurance positions, and boosting the investment potential of our entire financial services sector,” Toews said in a statement..Bill 16 proposes establishing provisions to enable Canadian-owned captive insurance companies to relocate — called “redomestication” — from an insurance jurisdiction outside Canada..“Redomestication” would help Alberta businesses looking to repatriate their foreign captives to do so without interruption of business. .Last year, the government passed the Captive Insurance Companies Act (Bill 76), which permits an entity or organization to insure itself against risk through its own subsidiary insurance company, rather than obtaining insurance from a third-party commercial insurance provider..Alberta is only the second province, after BC, to permit captive insurance and Bill 16 will make it easier to bring captives home. .If passed, the legislation would facilitate smooth access for foreign captives before Bill 76 takes effect this summer. .There’s currently about 175 Canadian-owned captives who could return to Alberta for business, the government said..The legislation will also help facilitate access to reinsurance — insurance for insurance companies — by enabling a limited partnership model for a provincial company that wishes to exclusively offer reinsurance. .There’s few options for reinsurance, and businesses typically look to US and European companies to fill these needs, the government said. Increasing availability should have a positive impact on the overall insurance supply in the provincial insurance market, and ease shortage and high prices, said a news release on Bill 16..If the bill is adopted, Alberta will be the first Canadian jurisdiction to allow licensed provincial insurance companies to focus solely on reinsurance business..This would also create new, well-paying jobs in Alberta’s finance and insurance sector, the government said. .Rachel Emmanuel is the Edmonton Bureau Chief for the Western Standard.remmanuel@westernstandard.news
The Alberta government has proposed legislation to increase the province’s insurance capacity..Finance Minister Travis Toews tabled the Insurance Amendment Act in the Alberta legislature on Tuesday afternoon..If adopted, the bill would provide consumers with more options with the ultimate goal of lowering costs. .“We’re delivering a regulatory framework that will help generate more insurance activity right here in Alberta — leading to more opportunities for Albertans in sophisticated finance and insurance positions, and boosting the investment potential of our entire financial services sector,” Toews said in a statement..Bill 16 proposes establishing provisions to enable Canadian-owned captive insurance companies to relocate — called “redomestication” — from an insurance jurisdiction outside Canada..“Redomestication” would help Alberta businesses looking to repatriate their foreign captives to do so without interruption of business. .Last year, the government passed the Captive Insurance Companies Act (Bill 76), which permits an entity or organization to insure itself against risk through its own subsidiary insurance company, rather than obtaining insurance from a third-party commercial insurance provider..Alberta is only the second province, after BC, to permit captive insurance and Bill 16 will make it easier to bring captives home. .If passed, the legislation would facilitate smooth access for foreign captives before Bill 76 takes effect this summer. .There’s currently about 175 Canadian-owned captives who could return to Alberta for business, the government said..The legislation will also help facilitate access to reinsurance — insurance for insurance companies — by enabling a limited partnership model for a provincial company that wishes to exclusively offer reinsurance. .There’s few options for reinsurance, and businesses typically look to US and European companies to fill these needs, the government said. Increasing availability should have a positive impact on the overall insurance supply in the provincial insurance market, and ease shortage and high prices, said a news release on Bill 16..If the bill is adopted, Alberta will be the first Canadian jurisdiction to allow licensed provincial insurance companies to focus solely on reinsurance business..This would also create new, well-paying jobs in Alberta’s finance and insurance sector, the government said. .Rachel Emmanuel is the Edmonton Bureau Chief for the Western Standard.remmanuel@westernstandard.news
