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.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260825930813/en/

Patrick McCrystal
Financial Analyst
+44 20 3808 2988
patrick.mccrystal@ambest.com

Kanika Thukral
Associate Director, Analytics
+44 20 7397 0327
kanika.thukral@ambest.com

Edem Kuenyehia
Director, Market Development & Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

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