The Prudential Regulation Authority and the Financial Conduct Authority have launched a consultation on a bespoke UK regulatory regime for captive insurance, aimed at allowing businesses to establish their own captive insurers in the UK. The proposal is designed for single-parent captives, which insure or reinsure the risks of a parent company and other companies within its group. The framework would streamline authorisation, with a target of four to six weeks, and would exclude captives from Solvency UK and Consumer Duty requirements. It would also apply lower capital and reporting requirements, a flexible capital resources framework, dedicated Prudential Regulation Authority supervisory resource, and tailored Financial Conduct Authority conduct requirements with proportionate supervision and reporting. Safeguards are included, including a restriction that captives could reinsure, but not directly insure, employee benefits-related policies. The consultation closes on 14 October 2026, with the regime due to launch in summer 2027 after feedback is considered. The authorities also intend to consult later on adding protected cell companies once the necessary legislation is in place, working with HM Treasury.
Bank of England2026-07-14
Prudential Regulation Authority and Financial Conduct Authority consult on tailored UK captive insurance regime with 4 to 6 week authorisation target
The Prudential Regulation Authority and the Financial Conduct Authority are consulting on a tailored UK regime for single-parent captive insurers. The proposal includes a four to six week authorisation target, lighter capital and reporting rules, and exemptions from Solvency UK and Consumer Duty, alongside safeguards on employee benefits-related business. The regime is planned to launch in summer 2027.