Captive Insurance in British Columbia
Canada's first choice for captive insurance
British Columbia leads the way as a domicile for captive insurance
- Tax deferral for captive insurance premiums
- No federal excise tax
- No provincial income tax on foreign risks
- Tax rate of 19% (15% in 2012) on foreign risks; 30% on domestic risks
- Deductibility of loss reserves
- No “mind and management” issue
- Low tax risk
- Ability to utilize any captive losses against other Canadian income
- Reduced offshore tax rate may be offset by increased costs of operation
- Reduced offshore tax rate is not available for Canadian risks
- A positive regulatory environment
- Flexible captive insurance legislation
- No specific solvency ratios
- Easy access to reinsurance markets
- Considerable latitude in the scope of allowable investments
- Reasonable capitalization requirements:
- Cdn $200,000 minimum share equity
- Availability of high quality professional services
- Economic, political and social stability
- Compatibility of local language, currency and customs
- Time zone convenience for Pacific Rim and North America
Income earned by a captive insuring non-resident property or events qualifies for a full refund of provincial income tax and incurs only the federal corporate income tax rate of 19% in 2009
28 May 2014 • Calgary, Alberta
Wednesday, May 28th and Thursday, May 29th, 2014
Control your risk profile and secure your enterprise risk aims.
Expand your corporate insurance strategy through leading global case studies; manage your riskiest ventures and preserve capital with an integrated captive strategy. Expand to new and emerging markets while mitigating the risks to your organization.
Create your blueprint for overcoming emerging risks and preserving precious capital through a calculated insurance strategy!
Your first step - THIS CONFERENCE!
Achieve 8 solutions from Canada's leaders in captive and corporate insurance!
- Employer liability: Assess and control liability costs through proactive captive solutions
- Captive innovations: Shape your captive to meet your individual needs
- Tax Implications: Preserve capital while remaining compliant
- ERM: Reduce organizational risks and avoid unexpected charges
- Catastrophic loss prevention: Integrate captives to streamline costs
- Captive benchmarking: Measure your success against captive leaders
- Data analytics: Access the necessary data to manage corporate risks
- Exit Strategies: Calculate when to thin, and when to leave your captive
An American perspective highlighting use of a captive insurance company for Canadian businesses, groups, pools, entities, associations, and producers with potential loss and liability exposure from operations and exports to the US. Discussion of a variety of purposes of using a captive insurance company to treat these exposures and an overview for Canadians as to the process of determining whether a captive would make economic sense.
Choosing a domicile: onshore vs. offshore
The benefits of locating onshore:
- A captive domiciled onshore is a domestic insurer for Canadian tax. Offshore captives may be subject to federal excise tax (10% of premiums) on Canadian risks
- Lower costs for audit and legal fees, travel, and management in BC
- No tax risk or tax governance issues associated with offshore structure
- Valuable executive time is not required for meetings offshore for tax purposes
The benefits of locating offshore:
- Greater regulatory flexibility. Offshore captives usually allow lower minimum capital requirements and may not require regulatory examinations
- Taxes on income are negligible
- Can offer coverages not offered onshore, i.e. certain third party risks
- Greater flexibility to adapt to changing market conditions.