LONDON, 14 July, 2026 ─ Marsh (NYSE: MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting, welcomes the Bank of England and Prudential Regulation Authority’s consultation on the introduction of a UK captive insurance regime. The consultation is a significant milestone for the UK insurance market and, if delivered in a competitive and proportionate way, could strengthen the UK’s position as a credible onshore home for captive risk financing.
Marsh believes a well-designed UK captive framework can help organisations manage risk more effectively, support investment and innovation, and increase resilience at a time when volatility, emerging risks, and capacity constraints continue to challenge many sectors. The regulators’ consultation and emphasis on engagement over the coming months signals clear momentum and an intention to build a regime that works in practice.
Marsh is encouraged by the direction of travel set out in the consultation and the predicted outcomes. In particular, the proposals point towards a workable model that would allow captives to combine direct insurance and reinsurance activity within a single legal entity, avoid blanket restrictions on ownership by particular sectors, and permit the use of fronting for compulsory classes where appropriate.
James Addington Smith, CEO, Marsh Risk UK, said: “We welcome the continued progress towards a UK captive insurance regime. Over the next three months, we will work closely with government and regulators to help shape a framework that is proportionate, competitive and practical to implement, positioning the UK as a high-quality domicile for captives and delivering meaningful value for clients, and for the wider market.”
The consultation also indicates that Protected Cell Companies remain part of the longer-term ambition, alongside a simpler and more proportionate approach to capital and solvency that recognises the specific risk profile of many captive structures. Continued efforts to accommodate joint ventures and owner-controlled arrangements are also positive, as these models can be important for groups exploring shared or collaborative approaches to risk financing.
There are, however, areas where further clarity will be important. Marsh expects additional refinement will be needed around the scope of international employee benefits arrangements, the practicalities of some regulatory frameworks, and the ownership thresholds required to qualify for certain structures, particularly for joint ventures.
Marsh also notes the related consultation on redomiciliation. While a credible pathway for overseas captives to move to the UK could enhance the UK’s attractiveness, the current position suggests that implementation details are still developing and that new entrants may need to plan for incorporation and licensing steps in the near term.
