BMS, the independent insurance and reinsurance broker, today announces the launch of BMS Captive Insurance Services in Alberta, Canada. The new division will provide captive insurance management and strategic advisory services to Alberta-based captive insurance and reinsurance companies. Once 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. Consistent with the confidentiality and independence standards required of captive insurance managers, the new division will strictly adhere to ring-fence principles.
BMS Canada’s captive insurance services will take full advantage of the opportunities arising from new Alberta-specific legislation, which offers the potential for leveraging the total range of BMS’ specialty and global platforms. The planned captive insurance services include insurance company management, strategic and advisory services, governance and compliance audits, analytical and capital impact analysis, and transfer pricing validation.
The launch of BMS Captive Insurance Services is a proactive response to opportunities and specialist servicing needs arising from the Alberta Captives Insurance Companies Act* and the Insurance Amendment Act**, which entered into effect on 1 July 2022.
Ian Matheson, non-executive chairman of BMS Canada, helped inform the new legislation through his role as a member of an Alberta Economic Development Task Force. In addition to the legislative initiatives, the Task Force developed a comprehensive strategic plan around positioning Alberta as an insurance, reinsurance, retrocession, and risk securitization centre of excellence, with captives as a major conduit. Brian Gomes, President & CEO of BMS Canada, participated in an advisory role to the task force.
In response to Task Force recommendations, the Alberta 2022 Speech from the Throne proposed initiatives to establish a reinsurance provider in Alberta with the aim of generating significant and sustainable risk transfer capacity with Alberta as the hub of an integrated global network, culminating in the Insurance Amendment Act. BMS continues to provide advisory support to the consortium actively engaged in the incorporation and capitalization of an Alberta-based reinsurer.
Matheson said: “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. 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.”
Gomes said: “Given market conditions, many organisations who need insurance remain
under-served. 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.”