Jeremy Hunt - Chancellor of the Exchequer
Stock Photo ID: 2275629837
22 November 2023news

UK Government to launch captive consultation

The Government of the UK has announced plans to set up a consultation on the creation of a captive market in the UK.

In his Autumn Statement speech to the House of Commons, outlining the Government’s financial policies, Jeremy Hunt, the Chancellor of the Exchequer, announced that there will be a: “Consultation on introducing a UK regime for captive insurance companies – the government will consult on the design of a new framework for encouraging the establishment and growth of captive insurance companies in the UK.”

The consultation will launch in Spring 2024.

News of the consultation comes after a number of approaches to the UK Government by the captive insurance industry. In September of this year the potential benefits of introducing a UK captive insurance regime were stated at a roundtable involving experts from across the global risk transfer value chain, who were joined by Andrew Griffith, Economic Secretary to the Treasury and City Minister.

News of the consultation was welcomed by Caroline Wagstaff, chief executive of the London Market Group.

“The London Market Group is delighted by the announcement today by the Treasury that it will consult on the creation of a UK captive regime by spring next year, taking on board the recommendations within our Plan for the Future,” said Wagstaff. “As the global centre for risk transfer, London needs to be able to offer all the tools in the toolkit, so this is a great step forward. We look forward to working closely with the government and regulators to ensure the UK remains a highly competitive insurance centre.”