The recently announced consultation on reforming the United Kingdom’s insurance-linked securities (ILS) risk transfer regulations is more likely to result in activity being taken by the UK that would have been booked in other jurisdictions, than to generate net-new ILS business, commentary from Fitch Ratings states.
Fitch has commented on the UK government proposals to reform its regulatory regime for insurance-linked securities (ILS) arrangements and for the insurance special purpose vehicle (ISPV) structure that can be used for transactions.
Fitch cautions that while these proposed reforms, which we reported on when they were recently announced with a new consultation, are designed to ease the regulations while expanding risk transfer options to be more in line with global competitors.
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