Zurich Insurance has welcomed proposals for a new UK regulatory framework for captive insurance, saying the regime “has the potential to strengthen the UK's position as a leading global insurance centre” and attract further insurance activity to the country.

As the consultation window closes, Zurich is submitting a formal response to the Prudential Regulation Authority and the Financial Conduct Authority, supporting efforts to establish a proportionate and competitive regime for captive insurers.

Esme Gould, head of captives and alternative risk transfer at Zurich UK, said: “At Zurich, captives are a core part of our proposition for commercial clients. They’re a useful and effective way of helping complex businesses manage their risks and establishing a regime here has the potential to strengthen the UK's position as a leading global insurance centre.

“The PRA and FCA have taken a highly collaborative approach to the consultation period and the process has generated significant industry interest. It’s provided valuable opportunities to discuss how a tailored framework can encourage innovation, support corporate risk management and, over time, potentially attract additional insurance activity to the UK.

“The proposed regime recognises the distinct nature of captive insurers and introduces a proportionate approach that should be competitive with existing regimes. We look forward to working with clients as the framework develops, and to supporting the next steps of enabling protected cell company structures as well.”

Zurich Insurance Group has more than 35 years of experience in captives and manages more than 600 fronting programmes globally. The group sees the proposed framework as an opportunity to strengthen the UK's international standing while helping businesses manage complex risks.

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