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public Onshore (Canada) verified Last Verified: 2026-11-06

British Columbia

British Columbia enacted Canada's first dedicated captive insurance statute in 1987 under the Insurance (Captive Company) Act (RSBC 1996, c. 227) and remains one of two Canadian provinces with standalone captive legislation alongside Alberta. Regulated by the BC Financial Services Authority (BCFSA), which succeeded the Financial Institutions Commission (FICOM) in 2019, it permits pure, association, and sophisticated insured captives—the latter requiring insureds to have aggregate annual insurance premiums of at least CAD 500,000. Captives can write nearly all classes of insurance or reinsurance (excluding direct surety and non-fleet automobile) and require a minimum of CAD 200,000 in shareholders' equity and CAD 100,000 in reserves. On 5 November 2026, BCFSA Statutory Approvals confirmed 20 active captives: 16 pure captives, 4 association captives, and 0 sophisticated insured captives. During 2026, 1 captive was licensed and 1 captive wound up.

Quick Facts

Verified 2026-11-06
Jurisdiction
Onshore (Canada)
Legislation
Insurance (Captive Company) Act, RSBC 1996, c. 227 & Insurance (Captive Company) Regulation, BC Reg. 99/2017
Tax Environment
Subject to BC Insurance Premium Tax on BC risks (4.4% property and fleet auto, 4% general/other, 2% life, accident and sickness) and federal (15%) and provincial (12%) corporate income taxes.
Contact
Tolga Yalkin, CEO & Superintendent of Financial Institutions
statapprovals@bcfsa.ca
Last Verified
verified 2026-11-06
Financial Requirements

Minimum Capital & Surplus

Structure Type Minimum Capital
Pure, Association, & Sophisticated Insured CAD 300,000 combined minimum (at least CAD 200,000 shareholders' equity and CAD 100,000 reserves per s. 8 of ICCA and s. 5 of BC Reg. 99/2017, or such higher amount as the Superintendent requires to maintain solvency)
info

Regulatory Framework

Insurance (Captive Company) Act, RSBC 1996, c. 227 & Insurance (Captive Company) Regulation, BC Reg. 99/2017

Applicable Statutes & Regulations

Insurance (Captive Company) Act, RSBC 1996, c. 227; Insurance (Captive Company) Regulation, BC Reg. 99/2017 (as amended by BC Reg. 183/2024); Financial Institutions Act, RSBC 1996, c. 141; Financial Services Authority Act, SBC 2019, c. 14; Insurance Act, RSBC 2012, c. 1; Business Corporations Act, SBC 2002, c. 57; Insurance Premium Tax Act, RSBC 1996, c. 232.

account_balance_wallet

Tax Environment

Subject to BC Insurance Premium Tax on BC risks (4.4% property and fleet auto, 4% general/other, 2% life, accident and sickness) and federal (15%) and provincial (12%) corporate income taxes.

Detailed Profile

Regulatory & Statistical Profile

bar_chart Captive Market Volume

Reporting Year 2026
Total Active Captives 20
New Captives Licensed 1
Surrendered Licenses 1

pie_chart Structure Distribution

Pure Captives 16
Association Captives 4
Sponsored / Cell Captives 0
Individual Segregated Cells 0
Sophisticated Captives 0

checklist Authorized Captive Structures

Pure captives (Single parent captives)Association captivesSophisticated insured captives

payments Fees & Solvency Compliance

Year Legislation Passed
1987
Licensing Speed
120-day target timeframe for a new captive insurance company under Information Bulletin FI-18-001 (February 2018), which BCFSA publishes. The target runs from the date the completion letter is sent. A preliminary completeness review is completed within ten business days, and the timeline does not start while a submission is deficient. The bulletin states that these timelines are a general guideline, can vary with volume and complexity, and that review by the decision maker may affect them. Captive insurance company renewal has a separate 90-day target in the same bulletin.
Premium Tax Rate
BC Insurance Premium Tax on taxable BC premiums: 4.4% for property and automobile insurance; 4% for general/other insurance; 2% for life, accident and sickness, and loss-of-wages insurance. Corporate income tax rates: 15% federal, 12% provincial.
Incorporation / Initial Fee
CAD 10,000 application fee for initial registration (effective September 1, 2024 under BC Reg. 183/2024; previously CAD 3,000).
Annual Maintenance Fee
Variable based on non-consolidated assets plus 0.019% of prior fiscal year written premiums (effective September 1, 2024): assets <= CAD 100M: CAD 5,000 + 0.019% of written premiums; assets > CAD 100M to CAD 1B: CAD 7,500 + 0.019% of written premiums; assets > CAD 1B: CAD 10,000 + 0.019% of written premiums. Consent fees: CAD 5,000 amalgamation, CAD 500 change in control, CAD 100 articles amendment.
Annual Filing Requirements
Registration expires 90 days after fiscal year-end and must be renewed annually via BCFSA's IRIS portal on or before 90 days after fiscal year-end, including: renewal application and fee, Captive Insurance Financial Schedule, audited financial statements (prepared under IFRS 17) with auditor's report, independent actuarial report (FCIA), parent/association financial statements, copies of insurance policies, reinsurance agreements, and investment policy. Meeting required in domicile.

gavel Regulatory Contact Office

Supervisory Authority
BC Financial Services Authority (BCFSA)
https://www.bcfsa.ca open_in_new
Office Address
600-750 West Pender Street, Vancouver, BC V6C 2T8
Regulatory Department Staff
9 FTEs
Captive Administrator
Tolga Yalkin, CEO & Superintendent of Financial Institutions
statapprovals@bcfsa.ca
Phone: 604-660-3555
Fax: 604-660-3365
Official Regulatory Sources
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