The Prudential Regulation Authority has committed to consult in Summer 2026 on a new insurance captives regime and welcomed HM Treasury proposals to progress legislative reforms to the United Kingdom's risk transformation regime for insurance special purpose vehicles and to enable Protected Cell Company captives. The new captives regime is expected to launch in Summer 2027, but Protected Cell Companies will not be included in the consultation or at launch because the legislation needed to allow them to operate as insurers will not be in place in time. The regime is intended to widen access to the risk management benefits of captive insurance. Protected Cell Company structures are expected to broaden access further by providing a more affordable route for smaller businesses and a pilot option for organisations considering standalone captives. Once the necessary legislation is in place, the PRA intends to consult on bringing Protected Cell Companies into the captives regime. Separately, after introducing reforms to the insurance special purpose vehicle framework in 2025, including an accelerated pathway for certain ISPVs, it plans further consultation in due course on additional ISPV changes to simplify the regime, increase flexibility and access, and improve Protected Cell Company use for ISPVs following the removal of legislative barriers.

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