The Bank of England and FCA seek to boost UK financial services competitiveness with a streamlined captive insurance regime.
UK regulators have unveiled plans for a dedicated captive insurance regulatory regime, targeting a 2027 implementation. The proposal aims to enhance the UK’s financial services competitiveness by allowing companies to underwrite their own risks through captive insurers, potentially tapping into a multi-billion-pound market.
The Prudential Regulation Authority and Financial Conduct Authority opened a consultation on the framework, with responses due by October 2026. The proposed regime would exclude captives from Solvency UK and Consumer Duty requirements, reducing capital and compliance burdens. Authorisation turnaround is expected to take four to six weeks.
Regulators emphasized the initiative could support economic growth while maintaining safeguards. Captive insurers are typically used by large corporations or public bodies to manage risk internally, rather than purchasing coverage from traditional insurers.