Regulatory Alerts2026-07-14
Added · Updated
PRA and FCA propose new captive insurance regime to drive UK growth and competitiveness
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have jointly proposed a new, tailored UK captive insurance regime to enhance the UK's competitiveness and attract captive insurers. This regime, separate from Solvency UK, introduces proportionately lower capital and reporting requirements, a flexible capital framework, and faster authorisation processes for single-parent captives, with a minimum capital floor of £100,000. It aims to establish a robust baseline framework for genuine risk transfer and effective governance, while limiting the scope to exclude higher-risk business types to maintain appropriate prudential standards.