Bringing Captives Home

In the Labour Government's first year, Luther Pendragon led a groundbreaking lobbying campaign for the London Market Group (LMG) to establish a UK captive insurance regime, unlocking access to a global market projected to reach $160 billion by 2030. This achievement overcame political transition, regulatory complexity, and longstanding policy inertia, embedding the reform within the Financial Services Growth Strategy.

The LMG represents London’s insurance and reinsurance market, a sector contributing almost 40% of the City’s GDP. Captive insurance – where companies create their own insurer to manage risk – has become a vital tool for corporations and public bodies, but due to regulatory barriers, no captives have historically operated in the UK, driving investment overseas. The new regime opens up domestic opportunities for FTSE 350 firms and major public sector organisations.

The campaign’s objectives were clear: secure Government backing and obtain regulatory commitment. Luther’s insight-driven strategy reframed captives as drivers of growth and capital repatriation. Creative execution included international engagement, industry mobilisation through a 100-signature letter to the Chancellor from businesses such as Heathrow and AstraZeneca, and strategic positioning in the Financial Services Growth Strategy and the Leeds Reforms.

The outcome was transformative for the industry: the Government committed to the regime within a year, integrated captives into its long-term financial strategy, and initiated regulatory work for implementation. The campaign was a true game-changer for the UK insurance industry, creating a dedicated regime that will unlock new risk management solutions and strengthen the UK’s position as a global financial hub.