The Financial Conduct Authority and the Prudential Regulation Authority published a joint statement supporting HM Treasury’s plans to grow the UK captive insurance market and setting out plans to develop a proportionate authorisation and supervisory regime for captives, reflecting the lower risk they pose. Consultations on the rules and policies for a UK captive insurance regime are planned for summer 2026. The planned regime will be based on the scope set out in HM Treasury’s consultation response and is expected to be supported by legislation enabling captives to be established within protected cell companies, which the regulators describe as an affordable route for smaller businesses and a potential stepping stone for larger corporates. The PRA, working with the FCA, will also establish stakeholder subject expert groups to inform policy development and technical issues; minutes dated 17 November 2025 from a Captives Subject Expert Group discussion highlight priorities including streamlining authorisation (including automation, potential conditional licences and recognition of experience running captives in other jurisdictions), setting clear timelines, international benchmarking, clarifying product scope and prudential “red lines”, and focusing initially on pure captives and protected cell companies rather than other corporate structures. Next steps include establishing the subject expert groups “as soon as practicable” and launching the summer 2026 consultations; the published meeting minutes also refer to a plan for the PRA to consult in six months and to maintain interim dialogue with participants.

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