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




Wednesday, May 28th  and Thursday, May 29th, 2014

Create an action plan that will improve your ROI while reducing risk exposure. Develop a tailored captive strategy regardless of your risk exposure.

Construct a robust enterprise risk management strategy to combat previously unknown risks with insights from experienced captive owners and managers. Shore up your insurance program, and secure your organization's bottom line:

Achieve 10 solutions from Canada's leaders in captive and corporate insurance!

  1. Utilize captives to mitigate new risk exposures
  2. Achieve lower costs and increased revenue
  3. Extract more value from a captive through a more flexible program
  4. Navigate emerging tax implications to mitigate costs and avoid sanctions
  5. Adapt to emerging risks with a captive program to lower your risk exposure
  6. Capitalize on new fronting options to lower your risks and reduce costs
  7. Fortify your ERM strategies to mitigate organizational risks
  8. Bolster governance programs to manage captive risks more effectively
  9. Exploit group captives and maximize the benefits to mid-sized companies
  10. Deliver higher returns on your captive to build capital while reducing risk

Register now and save 20% off* - 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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