Government To Consult on Design of UK Captive Insurance Framework

The UK government has indicated it will consult on the design of a new framework for encouraging the establishment and growth of captive insurance companies in the United Kingdom.

In HM Treasury's Autumn Statement 2023, submitted to parliament by the chancellor of the exchequer, the government indicated it would begin consultation on the framework for a UK captive regime in the spring of 2024.

In September, the London Market Group, the City of London's trade body for commercial insurers and reinsurers, held a roundtable focused on the potential benefits of a UK captive insurance regime.

Roundtable attendees included captive insurance company owners, brokers, insurers, and representatives of the wider risk management community. The gathering was the first time the UK government had brought together market experts to discuss the benefits a captive insurance regime could bring to the United Kingdom.

The creation of a UK captive framework is a key element of the London Market Group's road map to improve the business environment for risk transfer in the UK and part of its latest Plan for the Future, which launched September 18.