At least once insurer has taken Alberta up on its newly legislated option to domicile captive insurance companies in the province. The Captive Insurance Companies Act in Alberta, formerly Bill 76, came into force July 1.
NFP this week announced it has established, and will administer, the NFP Captive Management (Alberta) Corp. and augment its Complex Risk Solutions Group (CRSG).
“NFP is very excited about this new legislation and the opportunity it creates for Canadian employers to form captive insurance companies domiciled in Alberta,” said Joseph Seeger, managing director, co-lead, CRSG, NFP in Canada.
“In the face of rising costs and challenging coverage access, we have been preparing for months to be ready to deliver the specialized expertise clients need to evaluate and execute a captive structure.”
Expanding access to insurance, and getting a handle on high costs, was a key motivator for tabling the legislation that led to the Act. Comments made during legislative assembly readings of Bill 76 noted Alberta’s oil and gas companies, which have struggled with insurance coverage, will be major beneficiaries.
Creating options beyond unlicensed insurance for companies in Alberta also motivated the legislative change, some industry observers noted. Plus, the Act may boost Alberta’s financial services sector at a time when the province’s energy businesses have faced challenges from the pandemic and overseas conflict.
For its venture, NFP recruited two long-serving captive industry practitioners – Sam Jackson and Paul Young – to CRSG. “They add great value to our organization and clients pursuing alternative risk mitigation opportunities in Alberta,” said Seeger.
Jackson joins from Rogers Insurance, where he was a senior broking advisor evaluating alternative risk financing opportunities. He also spent 12-plus years at the Energy Insurance Group. Young’s decade-plus insurance experience includes positions with Accommodate Insurance Management, Canadian Energy and Energy Insurance Group.
“With the new legislation in Alberta, we are ready to deliver solutions that enhance cost efficiency and coverage effectiveness for a variety of companies, especially those in natural resources,” said Jackson. “This alternative risk transfer mechanism will deliver clients more cost-effective risk mitigation solutions in this environment of rising insurance prices.”
Feature image by iStock.com/wwing
