Airmic CEO Julia Graham was joined by Richard Cutcher, Airmic’s Captive Ambassador, and several members that own captives, to share their thoughts on the benefits of captive insurance and what a good captive regulatory regime might look like for the United Kingdom.
Airmic has an active Captive Special Interest Group, with more than 50 regular participants that own and utilise captives in domiciles all around the world.
“We are encouraged by the enthusiasm of the LMG and Government to explore the practicalities of introducing a captive regime in the UK that would provide our members with another captive domicile option,” said Julia Graham, Airmic CEO.
“The UK, already a world class (re) insurance centre, has the potential to offer a unique proposition for captive owners, with expert service providers and a trusted strong governance community already in place and a talent pool of professionals with a deep knowledge and experience in all aspects of managing risk and risk financing.
“However, a proportionate and fit-for-purpose regulatory environment for captives would need to be developed with clear guidance published. Strong captive domiciles benefit from committed governments and regulators that demonstrate they are in the captive business for the long term.
“We look forward to engaging further on this topic with the London Market Group and UK government.”
Richard Cutcher, Airmic’s Captive Ambassador, said: “Airmic is always keen to explore opportunities to widen the pool of solutions and options available to members who own a captive or are considering forming one in the future.
“Airmic members are currently well served by captive domicile options, but the UK, with all the (re) insurance infrastructure and expertise it already has in place, has the opportunity to present something compelling.
“It is Airmic’s position that a UK captive regime should be implemented outside of Solvency II, so captives can be regulated on a more proportionate basis.”
Airmic will continue to engage with the London Market Group, City Minister Andrew Griffith MP and Prudential Regulation Authority (PRA) on this topic.
Airmic will host its next Captives Forum at the Lloyd’s of London on 6 March, 2024. For more information on Airmic’s captive activities, email Richard Cutcher or in his absence Leigh-Anne Slade.
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