PRA Sets UK Captive Insurance Regime Consultation for Summer 2026

The Prudential Regulation Authority (PRA) has confirmed that development of a new UK captive insurance regime is a formal supervisory priority for 2026, with plans to consult on proposed rules in summer 2026 and launch the regime in 2027.

The update was included in a January 15, 2026, letter to insurance chief executives, signed by Gareth Truran, executive director, insurance supervision, and Shoib Khan, director, insurance supervision, outlining the PRA's supervisory priorities for the year.

The PRA said the captive regime work is part of its broader effort to advance its secondary objectives tied to competitiveness, innovation, and growth.

The regulator's timeline reinforces growing industry focus on the UK's potential to become a viable onshore captive domicile. In a prior Captive.com report, industry insiders noted that the UK already has the infrastructure and market expertise to support a captive sector, but that "the regulation is the only piece that's missing."

That earlier report also highlighted estimates from the London Market Group that reshoring captives could represent £153 million of economic value and could lead to hundreds of captives moving onshore or being established domestically if an appropriate regime is implemented.

In its 2026 priorities letter, the PRA framed the captive regime work within a broader program aimed at supporting innovation and adapting its supervisory approach, including efforts intended to reduce regulatory burden and streamline supervisory processes.