UK Consultation on Captive Insurance

On November 14, 2024, HM Treasury opened a Consultation on Captive Insurance. Through this consultation, the UK government is soliciting comments on implementing regulations intended “to make the UK a more attractive destination for captive insurance business.”

In response, the Centers for Better Insurance has submitted comments available at the following → link.

CBI’s comments explore the United States’ experience as the world’s largest captive market. Through this lens, CBI describes regulatory weaknesses in the US captive insurance market with respect to transparency, exploitation of government sponsored programs, and the use of captives in tax and accounting strategies.

CBI urges the UK government to ensure that under any new regulations UK domiciled captives will be held to the same standards of transparency, governance, and supervision to which the UK holds all others granted the privilege of a financial services license.