In the wake of a consultation on the creation of a captive regime in the UK, the UK Government, working closely with the financial regulators, has announced that it intends to proceed with the introduction of a new UK captive insurance framework.
The government’s view is that a new captive insurance framework will help cement the UK’s position as a leading international jurisdiction for insurance and risk management business. Improving the UK’s captive insurance offering can also support the government’s wider aim to promote growth in the economy, both via expanding the range of insurance services that can be offered in the UK and also by giving businesses in the UK a greater range of risk management options.
In a statement released on the UK Treasury’s website ahead of Chancellor Rachel Reeves’ Mansion House speech the UK government said that it is: “committed to establishing a genuinely competitive, bespoke captive insurance framework in the UK, and to do so in a way that balances speed of implementation with quality. To achieve this, the government will support the PRA and FCA in consulting on and introducing a comprehensive framework tailored specifically for captive insurers. The PRA and FCA will design this framework in line with their statutory objectives, including giving due consideration to their secondary growth and competitiveness objectives.
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