Captive Insurance Companies: Consultation on Proposed Fee Changes

BCFSA thanks those who took the time to participate in the consultation on proposed changes to the fees it collects from captive insurance companies (“captives”) authorized to conduct business in British Columbia. The comment period closed on September 9, 2023.

To see what consultation participants had to say and to learn how BCFSA raised awareness of the consultation opportunity, please see the Consultation Summary Report.

• Consultation Summary Report for Captive Insurance Companies

The new fees received provincial Cabinet approval and take effect on September 1, 2024.

Background

BCFSA does not receive funding from the Government of British Columbia. Most of BCFSA’s revenue comes from filing, registration, and application fees paid by regulated entities and individuals under the various statutes.

Captive insurance companies are companies incorporated or recognized under the B.C. Business Corporations Act and registered under the Insurance (Captive Company) Act. Captives can have direct or indirect impacts on the public, and a properly funded captive regulatory program helps to instill confidence in the sector.

BCFSA’s mandate is to operate on a cost-recovery basis. This means the direct costs to regulate, administer, and oversee captives must be recovered from that industry through fees collected by BCFSA. The proposed fee changes for captives will equip BCFSA to sustain its regulatory oversight, including risk management activities, and market conduct initiatives.

Learn More:

• Advisory: BCFSA Launches Consultation on Proposed Fee Changes for Captives 
• Advisory: New Fees for Captive Insurance Companies Effective September 1, 2024
• Insurance Fee Schedule