Richard Cutcher

The global benefits market has welcomed the Prudential Regulation Authority’s (PRA) inclusion of employee benefits in its first proposals for a UK captive regime. The regulator published extensive draft rules on 14 July with explicit mention of permitting captives to write employee benefits on a reinsurance basis only.

The initial reaction to the first proposals for a UK captive regime has been positive from industry experts, although further clarification is already requested in areas such as tax, employee benefits and re-domiciliation procedures. The Prudential Regulation Authority (PRA) published its draft proposals on 14 July and launched the next stage of consultation which will close on 14 October.

Key takeaways Employee benefits and compulsory lines to be permitted on reinsurance basis PRA targeting authorisation timeline of 4-6 weeks Minimum capital requirement set at £100,000 Consultation responses required by 14 October The Prudential Regulation Authority (PRA) has outlined its draft regulations for captive insurers in the United Kingdom, including a new “proportionate and tailored” solvency regime outside of Solvency UK.