Independent insurance and reinsurance broker BMS has announced the launch of a new captive business unit in Alberta, which recently passed legislation to allow the formation of captives.
The new BMS Captive Insurance Services will provide captive insurance management and strategic advisory services to Alberta-based captive insurance and reinsurance companies. After all necessary regulatory approvals are received, the division will serve as the foundation for the launch of BMS Canada’s Alternative Risk Financing (ART) business planning, the company said.
Services of the new division include insurance company management, strategic and advisory services, governance and compliance audits, analytical and capital impact analysis, and transfer pricing validation.
BMS added that consistent with the confidentiality and independence standards required of captive insurance managers, the new division will strictly adhere to ring-fence principles.
The launch of BMS Captive Insurance Services comes after Alberta passed the Captives Insurance Companies Act and the Insurance Amendment Act on July 1, 2022.
BMS said that Ian Matheson, non-executive chairman of BMS Canada, had a hand in informing the new legislation, as he served as a member of the Alberta Economic Development Task Force. Matheson and the task force also developed a comprehensive strategic plan around making Alberta a centre for insurance, reinsurance, retrocession, and risk securitization through captives. BMS Canada president and CEO Brian Gomes also served in an advisory role to the task force.
“With the amendments to the Insurance Act and the passing of the Captive Insurance Companies Act, Alberta is rapidly establishing its position as a vibrant and welcoming hub for insurance activity,” said Matheson. “It is gratifying to be able to work alongside my peers in the task force to continue to develop Alberta’s insurance expertise as well as to attract new business into the region.”
“Given market conditions, many organisations who need insurance remain under-served,” added Gomes. “Now this new legislation has entered into law, it will help address that gap, expanding the range of insurance options for businesses in the region. To ensure companies are able to fully take advantage of this, BMS Captive Insurance Services will be on hand to provide clients with the specialist knowledge they require to set up, manage and optimize a captive arrangement.”
