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“Can-do mentality” will help make the UK captive insurance regime globally competitive

Rob Geraghty says the UK captive insurance regime’s low fees, quick setup, and flexibility will make it highly competitive with global captive markets.
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By Robert Geraghty , 

International Captive Consulting and Sales Leader

01/22/2026 · 3 minute read

Low application fees, reduced capital requirements, quick timelines, and a can-do mentality will help make the UK captive insurance regime highly competitive with existing domiciles and other upcoming regimes, according to Marsh Captive Solutions International Sales and Consulting Leader, Robert Geraghty.

“If the UK can replicate some of the best protected cell company (PCC) systems from around the world — a PCC can be set up in days in Guernsey and Bermuda, and hours in Washington, DC — the regime will be well positioned to compete,” he said.

PCCs allow multiple businesses or clients to set up separate captive arrangements within one umbrella company, without forming distinct legal entities. This segregated solution is cost-effective and could be a key element of the UK regime for smaller and mid-sized companies that may be too small, based on premium spend, to form their own single-parent captive.

The regime’s three primary target groups are likely to be:

  • UK-based organizations considering setting up their first captive.
  • Organizations that currently have overseas captives and are looking to redomicile them to the UK.
  • Multinational companies, including those without a UK parent, that may consider the UK to set up a captive.

However, the UK regime needs to appeal to a wide range of entities and be open to all industries and all lines of business, panelists said. This includes the group life and employee benefits sector, which has now been embraced in plans for the new regime after being excluded from the original proposals.

Other sectors well-suited to captive creation include financial services institutions. Marsh currently manages £25.2 billion of captive premium for financial institutions, which write more lines through their captives than any other industry.

UK government-owned and arm’s-length bodies could also be strong candidates for captives.

No local authorities currently have captives, but it is possible that some could establish them in the future. Awareness of captives and their benefits remains limited within the public sector. A key challenge at present is the need for thorough education to enhance understanding of captives.

The first consultation and the responses received have revealed much about what the captive market could look like in the UK.

Regulators are becoming more comfortable with areas they initially did not fully understand and are now asking how they can become more competitive.

The panelists also discussed the success of the new captive regime in France, where there are 22 captives, with many more in the pipeline. The [captives have been set up by] French companies who have been waiting for this to be available to them. They are not big international businesses, but they are still big businesses.

Likewise, many of the new captives expected to be formed in the UK will likely be established by UK companies that did not previously own a captive — and will not be redomiciliations from elsewhere. This suggests that captive business will not be taken from other markets, but rather that the “captive insurance pie” will grow.

“The key is not to close any doors,” said Geraghty. Existing captive domiciles have evolved over decades, so they possess extensive experience, robust regulation, and strong reputations in captive management, making them solid options.  

Finally, companies looking to set up a captive in the UK were urged to get in touch with the Prudential Regulatory Authority (PRA) to share their intent and start making preparations.

For more information on captives, please contact your Marsh Risk advisor.

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