UK captive regime benefits pushed at London roundtable
The potential benefits of introducing a UK captive insurance regime have been stated at a roundtable involving Experts from across the global risk transfer value chain joined Andrew Griffith, Economic Secretary to the Treasury and City Minister.
The roundtable was brought together by the City Minister and the London Market Group (LMG), the City’s trade body for commercial re/insurers.
The event was attended by captive owners, brokers, insurers and the wider risk management community. According to the LMG this is the first time government has convened market experts to listen to the benefits that a captive regime could bring to the UK.
The creation of a UK captive framework is a key pillar of the LMG’s roadmap to improve the business environment for risk transfer in the UK, and a part of its latest Plan for the Future which launched.
“It was great to get round the table today with key industry leaders and financial services regulators to explore the case for designing a competitive UK captive insurance regime,” said Griffith. “I am thankful to the London Market Group for bringing us all together and I look forward to continuing to work with industry to support growth and international competitiveness across the UK’s insurance sector, helping ensure the UK remains a world leading destination for risk management solutions and insurance innovation.”
Caroline Wagstaff, chief executive of the LMG, commented: “The London Market is very grateful to the City Minister for his energy and focus on helping the market to thrive through the possible introduction of new products. Despite being the global hub for risk transfer, the UK’s regulatory regime is not conducive to businesses setting up captive insurers here. This is a rapidly growing global industry; with captive premium estimated to reach $161 billion by 2030, and other jurisdictions – including France and more recently Italy, are opening their doors.
“If we are to remain the place where business comes for risk transfer advice and solutions, then not having this string to our bow means we are not keeping pace with new and innovative methods of risk management. A UK captive domicile would offer participants an extensive financial services ecosystem; London-based global brokers with extensive captive consulting experience, an unrivalled range of local banking and asset management options and the world’s largest and most sophisticated reinsurance market.”
