The Government of the United Kingdom through HM Treasury has now published its response to the July 2025 consultation on a more flexible and extended risk transformation regime, saying it will pass reforms through legislature to promote insurance-linked securities (ILS) innovation in the country and facilitate a wider range of transaction structures.
We reported back in July 2025 that the UK Government had launched a consultation on its Risk Transformation Regulations, citing a goal to make the regime, which is largely applicable to catastrophe bonds and insurance-linked securities (ILS), more flexible and to also allow for more ILS transaction types.
Now, the UK Government has responded to the comments received on its consultation and said it will take a number of actions forward to both primary and secondary legislation, to reform the cat bond and ILS regulatory regime and better meet the needs of those seeking to enter into risk transfer arrangements backed by investors.
FULL ORIGINAL PUBLICATION HERE