The Bank of England and the Financial Conduct Authority have proposed a dedicated captive insurance regulatory regime set to launch in summer 2027. The Prudential Regulation Authority and the FCA opened a consultation on the framework, with responses due by 14 October 2026, as part of a push to strengthen the UK's competitiveness in financial services. Under the proposals, authorisation would be streamlined with a four-to-six-week target turnaround, and captives would be excluded from Solvency UK and Consumer Duty requirements while facing lower capital and reporting obligations. The regime is designed to be proportionate, with tailored supervision and safeguards such as permitting reinsurance of employee benefits but not direct cover. Regulators said the initiative could support an insurance market worth billions of pounds and position the UK as a base for global insurance and reinsurance business.