UK advances risk transformation reform, but defers key opportunities

HM Treasury’s plans will make it harder for the UK to become a leading jurisdiction in insurance-linked securities market

IN APRIL 2026, HM Treasury published its response to the July 2025 consultation on reforms to the UK’s risk transformation regime. The regime enables insurers to pass on underwriting risks to capital markets through the use of a transformer vehicle, such as a protected cell company (PCC). An example of a well-known risk transfer structure is an insurance-linked security.