How Crises Control Supports the UK’s New Captive Insurance Regime

July 22, 2025

Written by Anneri Fourie | Crises Control Executive

A Growing Challenge for Captive Insurers

The UK government is introducing a new regulatory framework for captive insurance. It’s a shift that could give organisations more control over their insurance strategies, with the option to form or relocate captive insurers within the UK. For businesses, this presents a practical and attractive alternative to offshore captive structures.

But while the rules might be more flexible, the responsibilities certainly aren’t. Firms will still need to demonstrate they can handle risk effectively, communicate clearly during incidents, and meet compliance requirements. That’s not easy, especially for companies new to the world of captive insurance.

The real challenge is managing operational risk and incident response at the speed and scale required by UK regulators. And this is where a platform like Crises Control can make a real difference.

What the UK Captive Insurer Regime Means for Business

The aim of the new regime is to encourage more businesses to set up captive insurers in the UK. Currently, many companies operate their captives in locations like Guernsey or Bermuda, where regulatory requirements are lighter. The UK wants to compete with those jurisdictions by making it easier to launch and manage a captive insurer domestically.

The new approach includes reduced capital requirements, a quicker authorisation process, and more practical governance rules. It’s designed to make the UK a viable home for captives without compromising regulatory oversight.

But while the setup might be simpler, running a captive still requires robust risk management, clear reporting, and the ability to respond quickly and confidently to critical events. These are not just operational needs, they are regulatory expectations.

Why Critical Event Management Is So Important for Captives

Captive insurers are often responsible for risks that are difficult to place in the open market. These can include cyber threats, reputational issues, and supply chain disruption. The ability to handle these events swiftly can make the difference between a contained issue and a major loss.

Because captives are part of a wider group, any failure to respond properly affects the entire organisation. A cyber attack, for example, might hit a group’s core systems and customer data. If the captive can’t respond quickly, the consequences can escalate fast.

This is where critical event management comes in. A platform like Crises Control helps insurers plan, manage and recover from incidents in real time. It connects the right people to the right information and gives them clear steps to follow. That means better decisions, faster actions, and fewer surprises.

Improving Risk Management for Captive Insurers

Captives need to prove they have the systems in place to manage risks, not just identify them. Annual reviews and risk registers are no longer enough. Regulators expect insurers to demonstrate that they can act effectively when a risk becomes a real-world incident.

Crises Control helps insurers meet those expectations. Its platform supports:

Custom-built incident plans for threats like cyber breaches, data loss and regulatory failures
Role-specific dashboards for compliance teams, risk managers and operational leaders
Automated workflows and records that support internal governance and regulatory reporting
Multi-channel communication tools including SMS, Microsoft Teams, voice, email and app notifications

These features allow captives to reduce incident response times, limit financial loss, and provide regulators with a clear view of their decision-making process.

Meeting FCA and PRA Expectations

Both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) will oversee the new regime. That means captives need to meet standards around governance, solvency and operational oversight.

This involves more than just filling out reports. Regulators want to see that insurers have proper control over their operations, and that senior managers are informed and involved. Crises Control supports this by providing:

Time-stamped incident logs that show how issues were handled
A clear trail of decisions and actions taken by board members and leadership teams
Centralised document storage for policies, plans and compliance records

This gives captives the tools to prepare for regulatory scrutiny and avoid gaps in compliance.

Clear and Timely Communication Is Essential

One of the biggest risks in any incident is poor communication. Delays or mixed messages can confuse staff, frustrate customers, and attract negative media attention. For captive insurers, who may be supporting business-critical functions, the stakes are especially high.

Crises Control provides a unified communication system to ensure everyone gets the right message at the right time. Features include:

Predefined contact groups for fast targeting
Two-way alerts to confirm receipt and capture updates
Geographic or role-based message routing
Integration with HR and IT systems to pull in live data

These tools help captives reach their people quickly, no matter where they are, and maintain control over the messaging during a crisis.

Long-Term Benefits Beyond Incident Response

While critical event management is vital during a crisis, its value extends beyond emergency situations. For captive insurers, platforms like Crises Control also support ongoing operational resilience.

Some of the long-term benefits include:

Supporting business continuity planning across multiple departments
Creating board-level confidence with structured reporting
Helping the organisation recover faster from disruptions

As the responsibilities of captives grow, especially within larger groups, these benefits can have a measurable impact on efficiency, cost, and regulatory confidence.

Digital Tools for a Digital Insurance Environment

With increasing digital risk and tighter regulations, captives need systems that are both powerful and easy to use. Crises Control provides that flexibility. It can be configured to match different captive models, whether direct-writing or reinsurance focused.

The platform also adapts to sector-specific needs. For example, a healthcare group may prioritise patient data protection, while a logistics firm might focus on supply chain resilience. Crises Control supports both by allowing tailored incident plans and workflows.

And as regulatory frameworks continue to evolve, the platform’s adaptability helps captives remain compliant across different jurisdictions without needing major IT overhauls.

Preparing for the Regime: Why Timing Matters

The UK’s captive insurance regime is expected to be in place by mid-2027. But regulators will start consulting on the rules as early as summer 2026. That means the window for preparation is already open.

Firms that start preparing now will be better positioned to:

Meet authorisation requirements faster
Build internal systems aligned with regulatory expectations
Demonstrate operational readiness to the FCA and PRA

Using Crises Control as part of that preparation can help organisations put the right infrastructure in place before the regime launches. That includes not just software, but also implementation support and ongoing advice.

Ready to Learn More?

The UK’s proposed regime for captive insurers offers real advantages. But to take full advantage, firms need to be ready to manage risk and compliance in a more visible, accountable way. That’s where tools like Crises Control can make a real difference.

If you’re thinking about setting up a UK captive or relocating one from overseas, now is the time to get ahead.

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FAQs

1. What is the UK’s new captive insurance regime and why is it being introduced?

The UK’s proposed captive insurance regime is designed to encourage companies to set up or relocate their captive insurers domestically rather than using offshore locations like Guernsey or Bermuda. The government aims to create a proportionate and competitive framework with reduced capital requirements, faster authorisation, and more flexible governance, making it easier for businesses to manage risk in the UK while maintaining strong regulatory oversight.

2. What challenges do UK-based captive insurers face under the new regime?

Although the regulatory approach is more streamlined, captives still face high expectations around operational risk, governance, and incident response. Firms must demonstrate they can manage critical risks, respond quickly to incidents, and maintain accurate compliance records for both the FCA and PRA. These responsibilities require strong internal systems and processes.

3. How can Crises Control support captive insurers in meeting regulatory requirements?

Crises Control helps insurers stay compliant by providing a platform that captures decision logs, stores compliance documents, and automates reporting workflows. It also supports board-level oversight by giving leadership teams a clear view of how incidents are managed and how risks are mitigated. This helps captive insurers demonstrate operational readiness to UK regulators.

4. Why is critical event management important for captive insurers?

Captives often handle high-impact risks such as cyber threats and operational disruptions. If these are not managed swiftly and effectively, the consequences can affect the entire group. A critical event management platform like Crises Control ensures that organisations can respond to incidents in real time, keep communication clear, and take fast, informed action to minimise damage.

5. When should companies start preparing for the new UK captive insurance regime?

With formal consultations expected in 2026 and implementation by mid-2027, companies looking to form or relocate a captive should start preparing now. Early planning gives firms time to build the necessary infrastructure, align with regulatory expectations, and demonstrate operational resilience from day one. Using platforms like Crises Control during this preparation can help streamline the process.