Insurance Law and Insurance Regulation

The Prudential Regulation Authority has unveiled proposals for a new UK captive insurance regime designed to boost competitiveness and provide businesses with greater flexibility in managing risk. The consultation paper outlines a bespoke framework with lower capital requirements, faster authorisation processes, and simplified governance structures compared to Solvency UK.

In Acasta v Eshiett [2026] EWHC 71 (Comm), the High Court held that a structural defects policy covering a seven‑flat apartment block was subject to a single aggregate limit of £1.5 million.

The FCA's second Enforcement Watch reveals a shift from initial forbearance to active scrutiny of Consumer Duty compliance, with 11 open investigations now underway. As the regulatory framework matures, firms face increasingly intensive supervisory intervention through VREQs and OIREQs, with fair value assessments emerging as a particular enforcement focus alongside product governance and vulnerable customer treatment.

The Prudential Regulation Authority has unveiled proposals for a new UK captive insurance regime designed to boost competitiveness and provide businesses with greater flexibility in managing risk. The consultation paper outlines a bespoke framework with lower capital requirements, faster authorisation processes, and simplified governance structures compared to Solvency UK.

The establishment of Zenkyoren RE Ltd., a new Guernsey-based reinsurer by one of Japan's largest co-operative insurance organisations, marks a significant development in global reinsurance strategy. This move demonstrates how sophisticated international insurers are leveraging Guernsey's regulatory framework and structuring capabilities to diversify catastrophe risk exposure and access alternative capital markets.

Manchester once again played host to the BIBA Conference, bringing together brokers, MGAs, insurers and service providers to discuss the issues shaping the market today.