Shoib Khan, director of insurance supervision at the Prudential Regulation Authority, used his address at today’s Airmic Conference to provide clarity on the forthcoming UK captive insurance regime, signalling a move from policy development towards practical delivery.

While the broad direction of the framework has already been outlined through engagement between HM Treasury, the PRA and the Financial Conduct Authority, the speech reinforced the regulator’s intention to establish a proportionate, commercially viable and internationally competitive regime.

For firms considering whether to establish captives in the UK ahead of the planned mid-2027 launch, the message is that the framework is moving closer to an actionable model, with early engagement expected to be important as proposals progress towards consultation.

Commenting on developments, Cormac Bradley, senior actuarial director at Broadstone, said: “The speech doesn’t fundamentally change the architecture of the proposed UK captive regime, but it does something important; it provides much greater confidence in how the PRA intends to deliver it in practice and the type of regime it is seeking to build.

“The emphasis on simplicity, proportionality and flexibility, particularly around capital, sends a clear signal that the UK is aiming to build a regime that is commercially viable and genuinely competitive, rather than a light-touch version of Solvency II.

“For UK and international groups, the key takeaway is that the regime is now moving from concept towards an actionable framework. The PRA is clearly signalling that it wants to develop a pipeline of credible applicants ahead of launch, and those that begin assessing how a UK captive could support their wider risk management strategy will be best placed to shape and benefit from the regime as it evolves.”

With a consultation paper expected this summer and implementation targeted for mid-2027, attention will now turn to the detailed proposals and how firms can engage with the PRA as the final framework takes shape.

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