Bill 16, Insurance Amendment Act, 2022 has passed its first reading in the Legislative Assembly of Alberta.
This latest bill follows the Captive Insurance Companies Act, which passed in December 2021 and expected to come into force by this summer.
If passed, Bill 16 will enable Alberta to become the first Canadian jurisdiction to allow licensed provincial insurance companies to focus solely on reinsurance business and use limited partnerships for boosting their capital needs.
In general, the bill would help enable easier access to reinsurance in Alberta. According to a release on the government’s website, increasing the availability of reinsurance “should have a positive impact on the overall insurance supply in the provincial market”.