The Financial Conduct Authority and the Prudential Regulation Authority have issued a consultation on a new regulatory framework for captive insurance in the UK. The consultation relates to single-parent captives and runs until 14th October. The regulators will then publish finalised rules with implementation following in mid-2027.

The regulators say the proposed framework will enable them to complete captive insurer authorisation applications in four to six weeks. Applicants will need to demonstrate they have effective supervision in place and appropriate financial and non-financial resources. The regulators will also assess their suitability and their proposed business model.

Launching the consultation, the FC A stated: “We are proposing a regulatory framework that removes or tailors several requirements that apply to conventional insurers that are not appropriate to the captive business model or its risk profile. These proposals deliver one of the priority actions we committed to take in supporting growth and innovation as set out in our Regulatory Priorities: Insurance report in February 2026.

“In particular, we focus on a streamlined set of requirements that ensure firms meet our threshold conditions while avoiding unnecessary regulatory burden and enabling a more efficient authorisations process.”