Announced in its most-recent Budget statement, the government said it was going to consult on the design of a new framework. The aim, it said, was to encourage establishment and growth of captive insurance companies in the UK. The consultation will launch in Spring 2024.
“Airmic welcomes the commitment from government to hold a consultation in 2024 concerning the introduction of a captive regulatory regime in the United Kingdom,” said Airmic CEO Julia Graham.
“We look forward to working with the government, regulators and the wider insurance community to ensure any proposed captive legislation is fit for purpose and supervises captives proportionately in a risk-based solvency regime,” Julia added.
The captive insurance industry has approached the government a number of times this year about introducing a regime. It follows similar moves in France last year that saw the passing of the 2023 Budget, which includes provisions for introducing a new captive regime in that country.
Airmic continues to play a key role in the process, through meetings between regulators, Airmic members, captive insurance and other industry stakeholders. Airmic also hosts a Captive Special Interest Group, meeting regularly to discuss the sector’s needs.
“We will work to collect their views on what a good UK captive domicile should look like,” Julia added.
Airmic’s work includes collaboration with the London Market Group (LMG), representing the various industry groups that make up the Lloyd’s and London company insurance market.
In September, Julia and Richard Cutcher, Airmic’s Captive Ambassador, joined a roundtable hosted by the UK government and the LMG to look into the benefits of a potential UK captives regime and what a good regulatory regime might look like.
Airmic will continue to play its part, alongside industry, as government and regulators continue to make their plans.