Regulators consult on tailored captive insurance regime

The FCA and PRA are jointly consulting on a new tailored regime for captive insurance.

The proposed regime would cover single-parent captive insurers, but the regulators plan to extend to other structures in due course. The framework would be distinct from Solvency UK regime and would include:

• Proportionately lower capital and reporting requirements;
• A flexible capital resources framework;
• Faster authorisation processes; and
• Other tailored regulatory requirements to reflect the typically lower risks of captives.

The consultation closes on 14 October 2026.