EDMONTON, AB – Alberta could soon have a new type of insurance which the government says would create options for businesses.
Captive insurance is referred to as an “in-house” solution where the insurer is wholly owned by those it insures.
The proposed legislation aims to address what the province says is a lack of availability and high prices.
Finance Minister Travis Toews says their goal here is to help Alberta businesses insure their risks and enabling captive insurance would be an important step to attracting businesses and insurance capacity to the province.
The captive insurance idea is getting support from industries across Alberta. In a statement, Gerald Wood with the Motor Dealers Association of Alberta says their members include over 90% of the franchised new vehicle and heavy truck dealerships in Alberta. “To have an option right here in Alberta to insure our members’ businesses is just good business.”
Captive insurance can be set up by entities in any sector of the economy which are looking for alternative insurance coverage. Right now, British Columbia is the only Canadian province which allows captives.