Captive owners, brokers, insurers, and representatives from the wider risk management community have gathered to explore the idea of introducing a captive insurance regime in the UK.
Brought together by Economic Secretary to the Treasury Andrew Griffith and the London Market Group (LMG), the roundtable signifies the first time that the government has convened market experts to discuss the benefits that a captive regime could bring to the country.
“The London Market is very grateful to the City Minister for his energy and focus on helping the market to thrive through the possible introduction of new products,” LMG chief executive Caroline Wagstaff said in a release.
“Despite being the global hub for risk transfer, the UK’s regulatory regime is not conducive to businesses setting up captive insurers here. This is a rapidly growing global industry, with captive premium estimated to reach US$161 billion by 2030, and other jurisdictions – including France and more recently Italy – are opening their doors.
“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.”
The UK has the largest insurance sector in Europe - employing 114,000 people— Andrew Griffith MP (@griffitha) September 18, 2023
This morning I met industry leaders and regulators to explore options for a UK captive insurance regime
Look forward to working with the sector to find smarter way to manage risk and support growth pic.twitter.com/25Y4UEMvWK
According to the LMG, the introduction of a UK captive framework is a key pillar of the trade body’s roadmap to improve the business environment for risk transfer in Britain.
The City Minister, meanwhile, had this to say: “It was great to get round the table today (September 18) with key industry leaders and financial services regulators to explore the case for designing a competitive UK captive insurance regime.
“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 UK remains a world-leading destination for risk management solutions and insurance innovation.”
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