Captive Insurance in British Columbia

Canada's first choice for captive insurance





British Columbia leads the way as a domicile for captive insurance

  • Taxation
    • 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

Upcoming events




Sheraton Centre Toronto, Wednesday, May 25th  and Thursday, May 26th, 2016

Apply best practices from leading risk managers to mitigate risks, reduce insurance costs & improve ROI

Identify cost-effective alternatives to manage your corporate programs

This is the only Canadian conference dedicated to Captive Insurance and a must-attend event for current & prospective captive owners, captive managers and corporate insurance professionals. In an interactive and insightful environment, thought-leaders in risk management will come together to discuss best practices for using captives in risk mitigation strategy.

Make sure your Captives strategy is performing at its best. Ensure you are up-to-date with regulatory changes, tax updates and innovative investment strategies. The 2016 Summit features discussions on:

Forming a Captive | Selecting a Domicile | Maximizing Captive ROI | Navigating Tax Law + MORE

Register now and save 20% off Registration - VIP code CCIA20:

Email: registrations@strategyinstitute.com
Tel: 1 (866) 298-9343 ext 200 (Toll Free)


Recent News


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.



 

 

 

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