Aon to launch UK-based captive management company after government announcement

Aon has announced that it will launch a new UK-domiciled captive management company following the government giving the green light to a new UK captives framework.

A consultation for a new framework around captives was unveiled by chancellor Rachel Reeves in her speech at Mansion House on 14 November 2024.

The government confirmed today (15 July 2025) that “following careful consideration of the consultation responses, the government, working closely with the financial regulators, intends to proceed with the introduction of a new UK captive insurance framework”.

Aon said the news was likely to result in more demand for UK-based captives.

It added that its new UK captive management company will provide clients with more choice as to where to domicile their captive insurance company and, in turn, how best to structure their risk finance programmes.

Ciaran Healy, global captives leader at Aon, said: “We are fully supportive of the government’s announcement, which will position the UK firmly on the global captive map.

“For a long time, captives have played a central role for organisations looking to optimise their overall risk financing strategy and the numbers of captives globally has continued to grow since the concept was developed in the 1960s.

“The UK is already home to the world’s leading insurance marketplace in London and it’s only natural that it should also be a competing jurisdiction for captives.

“The UK has the expertise, reputation and drive for innovation that will ensure success – and here at Aon we are already very advanced in our preparation to launch a new UK-based captive management company.”

Government statement

A captive is a wholly-owned subsidiary insurer formed to provide risk mitigation services for its parent company or related entities.

The government said that “a new captive insurance framework will help cement the UK’s position as a leading international jurisdiction for insurance and risk management business”.

It added: “Improving the UK’s captive insurance offering can also support the government’s wider aim to promote growth in the economy, both via expanding the range of insurance services that can be offered in the UK and also by giving businesses in the UK a greater range of risk management options.”