FCA
Financial Conduct Authority (UK)
FCA consults on tailored UK conduct regime for single-parent captive insurers
Published
Jul 13, 2026
Topics
Captive insurance, General insurance, Insurance conduct regulation, Authorisation, Regulatory framework, UK competitiveness
Executive Summary
The FCA is consulting on CP26/29, a new proposed UK conduct framework for captive insurers, focused on single-parent or “pure” captives. The FCA states that there are currently no captive insurers established in the UK and that businesses typically establish captives in other jurisdictions. The proposals are intended to create a proportionate conduct regime reflecting the lower consumer-protection and market-integrity risks of captives that insure or reinsure risks within their own corporate group. The consultation closes on 14 October 2026. Because this is a consultation, it does not yet impose final rules, reporting changes, or an effective date; firms should assess strategic, authorisation, governance, intermediary, and operational implications and consider whether to respond.
What Changed
Previous
The FCA states that there are currently no captive insurers established in the UK and that businesses wishing to use captive structures typically set them up in other jurisdictions.
New
The FCA proposes a proportionate conduct framework for single-parent captives, intended to make the UK a more attractive location for businesses to establish or relocate a captive insurer.
Previous
No UK-specific captive insurer conduct regime is described in the FCA consultation page.
New
The proposed conduct framework would be tailored to the distinct business model and lower risk profile of single-parent captives.
New
Consultation opened on 14 July 2026 and closes on 14 October 2026. The FCA says it will consider responses and publish a Policy Statement setting out final rules and responses to feedback after the consultation closes.
Business Impact
Who is affected
Existing insurers and reinsurers exploring captive structures, firms ceding business to or reinsuring captives, insurance intermediaries providing or planning insurance and risk-management services to corporates, captive managers and advisory firms supporting feasibility studies and applications, legal, actuarial and other professional services providers, trade bodies, industry groups, and other regulators or public authorities interested in the UK insurance market.
Jurisdictions
United Kingdom
Business processes
Captive insurance feasibility assessment, Insurance group structuring and domicile analysis, FCA and PRA authorisation planning, Conduct risk framework design for captive insurers, Broker and intermediary service model review, Corporate risk-financing strategy, Regulatory consultation response management, Board and executive regulatory monitoring
Estimated effort
Medium
Compliance risk
Medium
Affected Reports
| Field | Validation rule |
|---|
Recommended Actions
- 1
Review CP26/29 against any current or planned captive insurance feasibility work, especially where the business currently uses or is considering a non-UK captive domicile.
- 2
Identify whether the organisation would be affected as a potential captive owner, existing insurer or reinsurer, intermediary, captive manager, advisory firm, legal or actuarial adviser, or industry body.
- 3
Coordinate review of the FCA consultation with the PRA’s related consultation because the FCA states that the two papers together form the proposed overall UK captive insurance framework.
- 4
Prepare and submit any FCA consultation response by 14 October 2026 using the FCA online form or the contact route listed on the FCA consultation page.
- 5
Do not implement final-rule changes yet; track the FCA Policy Statement expected after the consultation closes for final rules, implementation dates, authorisation requirements, and any reporting or Handbook changes.
- 6
For firms considering UK captive establishment or relocation, prepare an internal impact assessment covering governance, conduct risk controls, intra-group insurance arrangements, reinsurance strategy, intermediary involvement, and authorisation readiness.
Timeline
publication
Jul 14, 2026
FCA published CP26/29 and opened consultation on a proposed tailored regime for captive insurance.
other
Jul 14, 2026
Consultation opened.
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
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