UK's PRA and FCA Propose New Captive Insurance Regime to Attract Insurers
The UK's Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have released proposals for a new captive insurance regime aimed at making the UK a more attractive domicile for captive insurers. The proposals, published on July 14, 2026, suggest a framework separate from Solvency UK, designed to be proportionate and internationally competitive. The regime would allow single-parent captives to write insurance on both a direct and reinsurance basis, a shift from previous proposals that required separate types for each. The PRA's approach emphasizes a streamlined authorization process and less onerous prudential requirements, reflecting the lower risk profile of captives compared to commercial insurers. The consultation is open until October 14, 2026, with the regime expected to launch in mid-2027. 
