The UK Government has launched a consultation to understand how the UK could be made more competitive for captives and how the market could provide greater economic benefits to the UK, while maintaining the requisite safeguards for captive owners and insureds.

Lunching the consultation, HM Treasury stated: “Given sustained interest from stakeholders, and in the context of a rapidly growing global captives market, the Government is keen to hear wider views from interested parties on captive insurance. That includes areas where it may be justified to take a different approach for captive insurance, as well as views on the economic case for change.

“This consultation does not explore the specific mechanism by which a different approach to regulating captives might be introduced in the UK. The Government will carefully consider the responses and engage closely with the PRA and FCA before deciding on next steps.”