Industry backs UK captive regime as consultation process moves closer

The UK is well positioned to become a leading captive insurance domicile, but success will depend on a competitive regulatory framework, industry collaboration and a strong pipeline of early adopters, delegates at Airmic’s 2026 conference in Birmingham heard.

Speaking during the panel session, ‘Captives and the UK: an international perspective’, moderated by Richard Cutcher, captives ambassador at Airmic, panellists welcomed the progress being made towards the introduction of a UK captive regime, with draft regulations expected from the Prudential Regulation Authority (PRA) in the coming weeks.

The panel followed a speech by Shoib Khan, director of insurance supervision at the PRA, who laid out the latest developments in the creation of a UK captive regime.

Caroline Wagstaff, chief executive of the London Market Group, said the journey towards a UK captive framework had been several years in the making, but praised the regulator’s willingness to engage with industry stakeholders.

“The biggest shift has been seeing and believing,” she said. “We’ve got the PRA here in force today talking about what they’ve heard and what they’ve listened to, and that they understand that this is a very different thing to regulate than their day job.”

Wagstaff added that the development of a UK regime would help reinforce the legitimacy of captives and strengthen London’s position as a global risk transfer hub.

The panel also explored the continuing growth of captive insurance globally. Esme Gould, head of captives and alternative risk transfer at Zurich UK, said captives had evolved from a niche solution into a mainstream risk management tool.

“Captives are very much now mainstream,” she said. “They are a long-term risk management tool, and where clients are looking for more control and stability around their risk and total cost of risk, captives are really helpful in doing that.”

Leon Walker, EMEA head of captives at Aon, argued that changing risk profiles and greater focus on capital management were driving demand. “The risk landscape has shifted,” he said. “CFOs and treasurers are asking very different questions around how we use capital expertly and how we use the captive to make better decisions.”

The panellists also agreed captive utilisation is becoming less dependent on insurance market cycles. Dan Sammons, captives manager UK and Ireland at HDI, said captives are increasingly viewed as strategic tools rather than short-term responses to hard market conditions. “The captive is set up to be a long-term stability and control tool,” he said.

Looking ahead, the panel stressed that the consultation period would be critical in shaping a successful UK regime. Wagstaff urged the industry to engage fully with the process, adding: “We all want it to work. Let’s help make it work.”

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