Bank of England to curb offshore life insurance trading

On 2026-04-29, the Bank of England’s regulatory arm set out plans to tighten the capital treatment of funded reinsurance, a type of deal in which life insurers pass on risk to offshore reinsurers. The move is intended to curb offshore life insurance trading and address risks in the UK insurance system, which the PRA said had about £40 billion of exposure and could grow further.