Marsh welcomes UK government’s captive insurance regime

Marsh, an insurance broker and risk advisor within Marsh McLennan, welcomes the UK government’s announcement to facilitate the creation of a UK regime for captive insurance companies, a move aimed at strengthening the UK’s competitiveness in the global insurance market.

As a reminder, in November 2024, the UK government launched a consultation on introducing a new framework for captive insurance companies.

Captive insurance is a well-established risk management tool that gives organisations greater flexibility in building their risk management strategies. It can help address both traditional and emerging risk management pain points, offering enhanced control and potential cost savings.

Once implemented, Marsh urges the regime to ensure the UK becomes a dynamic, innovative, and globally competitive hub for a wide range of captive insurance services, providing organisations of all sizes with broader risk management capabilities and more choice.

Notably, the announcement supports the use of captives for a broad range of risks, enabling more tailored risk transfer strategies and allowing captive owners to offer enhanced services to clients.

It also opens the door to more flexible, cost-effective structures, such as protected cell companies (PCCs), which could particularly benefit small and mid-sized businesses.

Chris Lay, CEO of Marsh McLennan UK and a long-time proponent of a UK-based captives regime, said, “We welcome the government’s decision, which will make the UK a full-service insurance centre through the addition of a captive insurance regime. Having previously run Marsh’s global captive business, I know that this has the potential to enable organisations of all sizes in the UK and around the world to have access to greater choice in how they manage risk and build the offering of our already world-leading insurance sector.

“We need to ensure that the new captive framework will not only allow the UK insurance market to further demonstrate its reputation for innovation but also that captives can be formed as seamlessly as they are in other jurisdictions.”

Several other organisations — including the London Market Group, the International Underwriting Association, and LIIBA — have also welcomed HM Treasury’s decision to proceed with introducing a UK regime for captive insurance companies.

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