The consultation on the creation of a new regulatory framework for captive insurance in the UK has closed, with Zurich Insurance saying it has the potential to strengthen the UK’s position as a leading global insurance centre.
In July 2026, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) proposed a regulatory framework to enable businesses to establish their own captive insurer in the UK. The consultation closed on 14 October 2026, with the framework expected to launch in summer 2027 following consideration of respondent feedback.
In July, brokers Marsh and Aon both published commentary on the consultation.
Marsh said it marked a significant milestone for the UK insurance market and, if implemented in a competitive and proportionate way, could strengthen the UK’s position as a credible onshore domicile for captive risk financing.
Aon suggested that an established captive framework in the UK could give businesses greater flexibility in their use of captive solutions.
AM Best expects the consultation to result in a captive regime that compares well with other established captive domiciles. The UK regime’s proposals are not expected to be significantly more capital-efficient than those of other regimes, but the UK may be considered a preferred captive domicile for UK companies, according to the ratings agency.
As the consultation window closes, Zurich Insurance has welcomed the potential boost the framework could bring to the standing of the UK insurance sector.
The Zurich Insurance Group has more than 35 years of experience in captives and already manages more than 600 fronting programmes globally. Zurich is submitting a formal response to the consultations run by both the PRA and FCA, supporting efforts to establish a proportionate and competitive UK regime.
Esme Gould, Head of Captives and ART at Zurich UK, said, “At Zurich, captives are a core part of our proposition for commercial clients. They’re a useful and effective way of helping complex businesses manage their risks and establishing a regime here has the potential to strengthen the UK’s position as a leading global insurance centre.
“The PRA and FCA have taken a highly collaborative approach to the consultation period and the process has generated significant industry interest. It’s provided valuable opportunities to discuss how a tailored framework can encourage innovation, support corporate risk management and, over time, potentially attract additional insurance activity to the UK.
“The proposed regime recognises the distinct nature of captive insurers and introduces a proportionate approach that should be competitive with existing regimes. We look forward to working with clients as the framework develops, and to supporting the next steps of enabling protected cell company structures as well.”
