The UK has taken a decisive step towards establishing itself as a premier global hub for risk transfer with the recent announcement from Chancellor Rachel Reeves, who has formally authorised HM Treasury’s consultation on introducing a UK captive insurance regime.
This long-anticipated development could reshape the landscape for UK-based corporates, insurers, and brokers — creating new opportunities to strengthen domestic risk management and enhance the UK’s competitiveness on the world stage.
Why This Matters
Captive insurance — where companies create their own licensed insurance subsidiary to better manage risk — is a sector on the rise. Global captive premiums are forecasted to reach US$161 billion by 2030, and jurisdictions like Bermuda, France, Italy, and Guernsey have already carved out significant market share.
By introducing a proportionate and business-friendly regime, the UK has the potential to:
- Enable UK plc's to establish captives onshore, reducing the need to domicile in overseas markets.
- Reinforce London’s position as a leading risk-transfer centre, rivalling established hubs.
- Stimulate growth across the wider UK insurance and reinsurance sectors, tapping into new revenue streams and expertise.
Industry Consultation: A Collaborative Approach
The next phase involves a comprehensive consultation with the market. This is a critical opportunity for stakeholders — from captives and brokers to insurers and corporates — to shape a framework that is robust, flexible, and aligned with the unique strengths of the London Market.
Industry leaders are already signalling strong support. Caroline Wagstaff, CEO of the London Market Group, and Julia Graham, CEO of AIRMIC, have both emphasised that a successful captive regime isn’t just about boosting the UK’s global standing. It’s about enhancing the resilience of UK businesses, providing better tools for risk management, and leveraging London’s world-class insurance infrastructure.
What’s Next?
With the consultation process now underway, all eyes will be on HM Treasury’s next steps and the feedback from industry stakeholders. If the UK gets this right, it could unlock a new era for domestic and international risk financing — right here in London.
🌍 The message is clear: the UK is ready to compete — and win — in the global captives market.
Want to explore what this could mean for your business?
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