Fitch issues “systemic risk” warning over UK captive regime

Credit rating agency Fitch is warning the UK government that a new, proportionate captive regime could lead to “growing pockets of risk” accumulating “outside the core regulated insurance sector” and increasing systemic risk.

The intervention came after Captive Intelligence reported last month that the Treasury had instructed regulators to design a competitive and bespoke regulatory environment for captives, a move which has been widely welcomed and applauded by industry.