Roundtable Considers Creation of UK Captive Insurance Domicile
September 21, 2023
Global risk transfer experts discussed the potential benefits of a UK captive insurance regime at a recent roundtable discussion.
The roundtable was organized by Andrew Griffith, UK economic secretary to the treasurer and city minister, and the London Market Group, the City of London's trade body for commercial insurers and reinsurers.
Event attendees included captive insurance company owners, brokers, insurers, and representatives of the wider risk management community. The gathering was the first time the UK government had brought together market experts to discuss the benefits a captive insurance regime could bring to the United Kingdom.
The creation of a UK captive framework is a key element of the London Market Group's road map to improve the business environment for risk transfer in the UK and part of its latest Plan for the Future, which launched September 18.
"It was great to get round the table today with key industry leaders and financial services regulators to explore the case for designing a competitive UK captive insurance regime," Mr. Griffith said in a statement. "I am thankful to the London Market Group for bringing us all together, and I look forward to continuing to work with industry to support growth and international competitiveness across the UK's insurance sector, helping ensure the United Kingdom remains a world-leading destination for risk management solutions and insurance innovation."
"Despite being the global hub for risk transfer, the UK's regulatory regime is not conducive to businesses setting up captive insurers here," Caroline Wagstaff, CEO of the London Market Group, said in the statement.
"If we are to remain the place where business comes for risk transfer advice and solutions, then not having this string to our bow means we are not keeping pace with new and innovative methods of risk management," Ms. Wagstaff said. "A UK captive domicile would offer participants an extensive financial services ecosystem; London-based global brokers with extensive captive consulting experience, an unrivaled range of local banking and asset management options, and the world's largest and most sophisticated reinsurance market."
September 21, 2023