FCA
Financial Conduct Authority (UK)
FCA consults on tailored UK conduct regime for captive insurance
Published
Jul 13, 2026
Topics
Captive insurance, General insurance, Insurance authorisation, Conduct regulation, UK financial services competitiveness, Consultation
Executive Summary
The FCA has published CP26/29, opening consultation on a new, proportionate conduct framework for captive insurers in the UK. The consultation opened on 14 July 2026 and closes on 14 October 2026. The FCA is consulting alongside the PRA, whose separate paper is intended to form part of a coherent overall UK framework for captive insurance. The FCA states that there are currently no captive insurers established in the UK and that businesses commonly use other jurisdictions for this structure. The proposals focus on single-parent, or “pure”, captives, reflecting the FCA’s view that these entities generally present lower conduct and market-integrity risks because they insure or reinsure risks within their own group. This is not yet a final rule change: the FCA will consider feedback and publish a Policy Statement setting out final rules and responses. Firms should treat the publication as a strategic planning and engagement trigger, particularly where they are assessing UK domicile, captive feasibility, intermediary services, or future authorisation readiness.
What Changed
Previous
The FCA states that there are currently no captive insurers established in the UK, and businesses typically use other jurisdictions for captive structures.
New
FCA CP26/29 proposes a tailored conduct framework intended to support UK establishment or relocation of captive insurers.
Previous
No bespoke FCA conduct framework for UK single-parent captives was identified in the FCA publication.
New
The proposed framework is designed around captives that generally insure or reinsure risks within their own group.
Previous
Captive insurers did not have a dedicated UK regulatory framework under the FCA publication’s description.
New
Firms need to assess both conduct and prudential proposals when considering UK captive structures.
Previous
No CP26/29 response process existed before publication.
New
Responses to the FCA consultation are requested by 14 October 2026, including via captives@fca.org.uk or the FCA online form.
Previous
No final FCA rules for this proposed captive framework have been published in the source.
New
The publication is consultative; implementation timing and final rule text remain pending a future FCA Policy Statement.
Business Impact
Who is affected
Directly affected
existing insurers and reinsurers exploring captive insurance structures, firms ceding business to or reinsuring captives, insurance intermediaries, captive managers, advisory firms, legal firms, actuarial firms and other professional services providers.
Indirectly affected
trade bodies, industry groups, other regulators and public authorities, and corporates considering UK-domiciled captive risk-financing options.
Jurisdictions
United Kingdom
Business processes
Captive feasibility and domicile assessment, Insurance and reinsurance strategy, FCA and PRA authorisation readiness planning, Conduct risk framework design, Governance and board approval for group risk-financing structures, Consultation response coordination, Intermediary and captive-manager service model review
Estimated effort
Medium
Compliance risk
Medium
Affected Reports
| Field | Validation rule |
|---|
Recommended Actions
- 1AI generatedStep 1 of 6
Assign joint ownership across insurance, legal, regulatory affairs, tax and treasury teams to review CP26/29 and the related PRA consultation before the 14 October 2026 deadline.
- 2AI generatedStep 2 of 6
Decide whether to submit an FCA response, particularly on proportionality, scope, authorisation expectations and how single-parent captive arrangements should be treated in conduct rules.
- 3AI generatedStep 3 of 6
For groups considering captives, refresh feasibility and domicile assessments to include a potential UK option, noting that final rules and implementation timing are not yet confirmed.
- 4AI generatedStep 4 of 6
Map likely governance, conduct-risk and service-provider requirements against existing captive or insurance programme controls, but do not implement rule-specific controls until final FCA and PRA policy is published.
- 5AI generatedStep 5 of 6
Intermediaries, captive managers and professional advisers should identify affected client propositions and prepare briefing materials that distinguish consultation proposals from final regulatory obligations.
- 6AI generatedStep 6 of 6
Monitor the FCA Policy Statement after consultation close and reassess authorisation planning once final rules, forms or guidance are available.
Timeline
publication
Jul 14, 2026
FCA CP26/29 consultation opened and was first published.
consultation deadline
Oct 14, 2026
Deadline for responses to FCA CP26/29.
Sources
AI-generated analysis is based on the following primary sources. Always verify against the official publication.
- Consultation paper webpageFinancial Conduct AuthorityJul 14, 2026CP26/29: A tailored regime for captive insurance ↗
https://www.fca.org.uk/publications/consultation-papers/cp26-29-tailored-regime-captive-insurance
Related Evidence
Verified source support for this analysis
The evidence agent checks whether the drafted finding is supported by official publications and relevant public source material.
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