"The news that the regulations have been approved is a great step forward. London is in a strong position when it comes to attracting ILS business as it is home to some of the world’s best and brightest insurance talent, whose knowledge, experience and ability to innovate is unparalleled. London also has a thriving community of brokers too and can draw on a huge amount of capital.
“ILS investors used to operating in jurisdictions such as Bermuda will need to get to grips with what London has to offer. A key sticking point is likely to be the speed-to-market facilitated by the efficiency of regulatory approvals; if London can genuinely compete with the established ILS markets in this space then the sky is the limit for the UK to become a hub for ILS business".
“The protected cell company model for ILS is attractive in that it allows investors to ring-fence risk; with each individual cell of a protected cell company effectively operating like a separate insurance vehicle. Each cell is fully funded for the risk or portfolio of risks for which it is designed but is isolated from other cells within the protected cell company, ensuring there is no cross-contamination.
“ILS have been gaining popularity over the last two decades and growth is set to continue. The strength of London's reputation will serve as an advantage given recent disclosures around offshore tax havens, some of which have already become established ILS centres.”
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