The UK has long lacked a dedicated captive insurance regulatory regime. Before joining the European Economic Community (EEC, now the EU) in 1973, there was no separate classification or rules for captive insurers — captives were treated identically to commercial insurers selling to the public. Almost all UK corporate captives are domiciled in Guernsey, Isle of Man, Gibraltar and other offshore territories. In July 2025, the Chancellor announced plans at the Mansion House to "bring this business home". In July 2026, the PRA (CP11/26) and FCA (CP26/29) simultaneously published consultation papers, targeting the opening of applications by mid-2027. This will be the most significant "regime repatriation" in UK wholesale finance since Brexit, and the biggest variable reshaping the global captive landscape over the next three years.
