The United Kingdom’s Prudential Regulatory Authority (PRA), which is part of the Bank of England, said that it recognises the need to improve the country’s authorisation process for insurance-linked securities (ILS) vehicles, noting that time taken is a factor.
In a letter to insurance and reinsurance CEO’s, Anna Sweeney and Charlotte Gerken, two Executive Directors for Insurance Supervision, laid out the regulators priorities for 2022 and ILS got a small, but perhaps meaningful, mention.
The UK’s Risk Transformation Regulations were launched in 2017 and set out the rules to govern ILS issuances and the necessary insurance special purpose vehicles (iSPV’s), that can be used for entering into transactions including catastrophe bonds and collateralised reinsurance arrangements.
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