Marsh has responded to the UK consultation on a captive insurance regime led by the Bank of England and Prudential Regulation Authority, describing it as a step forward for the domestic market.

The proposals indicate a framework that could allow captives to write both direct insurance and reinsurance within a single entity, avoid blanket sector ownership limits and permit fronting arrangements for compulsory classes where needed. Longer-term plans include protected cell companies and a more proportionate approach to capital and solvency.

James Addington Smith, CEO, Marsh Risk UK, said: “We welcome the continued progress towards a UK captive insurance regime. Over the next three months, we will work closely with government and regulators to help shape a framework that is proportionate, competitive and practical to implement, positioning the UK as a high-quality domicile for captives and delivering meaningful value for clients, and for the wider market.”

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