Context
The Prudential Regulation Authority (PRA) held a roundtable with the Financial Conduct Authority (FCA) and HM Treasury to discuss the proposal for a tailored UK regime for captive insurers, CP11/26.
Key points to note and next actions
Discussion centred on the proposed scope of the regime, authorisation processes, supervision, governance and capital requirements. The PRA reiterated its aim of authorising complete applications within four to six weeks, emphasised a proportionate supervisory approach, and confirmed that captive boards would remain accountable even where activities are outsourced. Participants were broadly supportive of the proposed capital framework, while the PRA confirmed that pension risks would remain outside the initial scope of the regime.
Also discussed was the potential future introduction of protected cell companies (PCCs), group captives and association captives. HM Treasury noted that PCCs would require legislative change before implementation and confirmed that no special tax incentives are currently planned, with captives expected to be taxed in the same way as other insurance undertakings.
For firms that wish to respond to the consultation on the proposed captive insurance regime, they must do so before the consultation closes on 14 October 2026.