Best's Commentary: AM Best Comments on Proposed Captive Regime in United Kingdom

AUGUST 25, 2026 09:13 AM (EDT)

Best's Commentary: AM Best Comments on Proposed Captive Regime in United Kingdom

CONTACTS:

FOR IMMEDIATE RELEASE

LONDON - AUGUST 25, 2026 09:13 AM (EDT)
The U.K. insurance regulator's recently released consultation paper on a bespoke regulatory framework for single-parent insurance captives in the United Kingdom is expected to create a captive regime that compares well with other established captive domiciles, according to a new AM Best commentary.

In a new Best's Commentary, "U.K. Plans for a New Flexible and Competitive Captive Insurance Regime Take Shape", AM Best notes that while U.K.-domiciled corporations are likely to consider establishing captives in the United Kingdom given the flexibility around capital and operational structures, taxation is expected to be a key consideration.

Patrick McCrystal, financial analyst and one of the authors of the commentary, said, "For U.K. corporates, the proposed captive regime could mean keeping risk management and governance within the country and avoiding offshore governance complexities. Nonetheless, for parent companies, taxation is expected to be a key consideration. U.K. captives are expected to be subject to a standard U.K. corporate tax rate whilst some of the other established domiciles have lower tax rates."

To access a complimentary copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=367856.