The UK just announced a landmark development that will reshape global risk management: the formal establishment of a new captive insurance and protected cell company regime. This isn’t just another policy update; it’s a monumental step that not only reinforces London’s standing as a financial hub but also strategically positions the UK to potentially become the world’s leading captive domicile over the next decade.
This new legislation is set to transform how many companies approach risk financing. It opens up fantastic opportunities for multinational and UK-based businesses, offering access to more extensive direct and reinsurance capacity than most other places. We’re talking about the potential for over 700 captive insurers, according to multiple reports, to form right here in the UK, or to move their existing operations from established domiciles. For many of our corporate clients, having a robust, onshore option with direct access to London’s incredible market simply makes sense.
What makes the UK so special?
It really comes down to London’s unique ecosystem. London has a powerful combination of talent, capacity and smart regulation that you won’t find anywhere else. It’s home to an experienced pool of insurance and reinsurance professionals, who can serve as independent directors for captives. Then there’s Lloyd’s of London, right on our doorstep, offering unmatched capacity and expertise. The sheer scale of direct and reinsurance capacity available in the ‘Square Mile’ alone is incredible, and Lloyd’s direct writing capabilities are a huge benefit for large multinational businesses.
Thinking about re-domiciling your captive to the UK?
This new regime also sparks a big question for many organisations: could moving your existing captive to the UK be your next strategic move? We’re expecting a lot of interest, especially from UK-based companies, but also from international clients. Consolidating governance, tax reporting and market access here in the UK could offer huge advantages. Plus, there’s a strong national security angle – bringing captives covering critical UK infrastructure onshore could improve oversight and safeguard sensitive information.
We will be doing a deep dive into the proposed new legislation to determine the optimal strategies for companies like yours to truly benefit from this. We are looking to confirm that the regulatory framework is both practical and financially sound for those considering a move to the UK from other locations.
This announcement is an exciting step forward, and we are ready to help you explore these new possibilities. Please don’t hesitate to reach out to our dedicated Captive team – Chris Sutton, Pete Chesman ACII, Graham McCarthy and Sean Walsh.
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