Companies Act 2014 section 1442

Certain captive insurers and re-insurers: exemption from requirement to have audit committee

Section 1442 provides an exemption for certain captive insurance and captive re-insurance undertakings from the obligation to have an audit committee, provided they meet specific ownership and securities conditions.

• Captive insurers and re-insurers may be exempt from the requirement to establish an audit committee under the Statutory Audits Directive.
• The captive undertaking must not be owned by a credit institution or a group of credit institutions.
• The captive undertaking must not have issued transferable securities admitted to trading on a regulated market.
• The exemption reflects the lower inherent risk profile of captive insurers, which are essentially a form of corporate self-insurance.