PRA on captive consultation: your feedback is vital

“It is very important to take the time to review the document and tell us if it’s hitting the right spot. We can only act on evidence,” Nylesh Shah, head of supervision, London Market, at the PRA, told Airmic members at its Captive Forum.

The PRA is aiming to have new captive formations in place and ready to go on day one of going live, said Shah, adding that businesses can initiate conversations with the PRA long before the regime comes officially into force:

“The initial consultation document this summer should give you enough of an idea of what it will look like. If you are considering being an early mover, our doors are open for early discussions so that on day one we are ahead of the game.”

“The application process must be carefully thought through”

It is almost one year since plans to create a UK captive regime were given the official green light by the government. During this time, the PRA has been undertaking an extensive round of consultations with captive owners, insurers and the wider captive ecosystem, including a series of Special Interest Groups to which Airmic contributed.

The process has been very positive and insightful for the PRA, said Shah. “We understand that how we deliver the regulation is just as important as the regulation itself,” he reflected. The application process – which requires different structures to traditional insurance authorisations – must be carefully thought through, he noted.

Shah added that the PRA understands that the new regime must be internationally compelling and flexible enough to respond both to the needs of different corporations as well as to business and risk developments within the market.

“We plan to make the initial scheme as flexible as we can in terms of what risks are allowed in the captive. Secondly, the PRA must be set up to respond to changes…we’re working on having the resource to respond to individual circumstances.”

Timeline on track

The process remains on track to go live in the summer of 2027, although Shah advised that some regime features – such as provisions for protected cell companies – will be rolled out in a second phase.

The PRA’s policy and supervision team are currently drafting the initial proposal. This is likely to be published in the summer of 2026 and open to a three-month consultation.

In the meantime, Shah urged members to engage with the PRA, stressing it is not too late to contribute to the dialogue: “Our door is still open to new ideas and views.”