From: London Market Group
The London Market Group (LMG) welcomes today’s announcement by Rachel Reeves, Chancellor of the Exchequer that HM Treasury will move ahead with the introduction of a UK regime for captive insurance companies. The LMG is confident that a UK regime will deliver an important risk management tool for UK and international plcs, as well as reinforcing London’s position as the global centre for risk transfer and insurance.
The announcement follows a campaign, led by the LMG but supported by brokers, captive owners and advisers and insurers, advocating for a dedicated and proportionate regulatory regime for captives. Over several years, the LMG has been in discussions with HM Treasury, the Prudential Regulation Authority and Financial Conduct Authority over how the proposed regime might be shaped.
Captives are taking centre stage as part of the established and long-term risk financing strategies of many important commercial organisations.”
Sean McGovern, LMG Chair
Sean McGovern, Chair of the LMG said: “If London is to retain its position as a global centre for risk transfer, it needs to be able to offer all the tools in the toolkit. This announcement is clear evidence of the government recognising the London Market’s role as a contributor to growth and delivering on commitments to support the industry as we continue to enhance the market’s world-leading position. British companies and public sector institutions now need to join us in encouraging the regulators to move at pace to establish an attractive and dynamic UK captive regime so they grasp the opportunities offered by the announcement today with both hands.