Guernsey’s insurance-linked securities (ILS) sector has revealed that it aims to work closely with the developing market in London following the introduction of an ILS regime there in 2017.
During a roadshow earlier this year, Guernsey practitioners learned that ILS business in London has been slow to take off, indicating that it could represent a complementary market and mutually beneficial opportunity.
Peter Child, Managing Director of Artex Risk Solutions in Guernsey and Chairman of the Guernsey International Insurance Association’s Market Development Committee, attended the roadshow.
He said: “We gained the view from those that we spoke to is that London could be seen as complementary to Guernsey’s ILS sector. While there is demonstrable political will to see the London ILS offering thrive, maintaining its insurance sector’s reputation as a full-service centre capable of delivering a full range of insurance and reinsurance services, it is clear that the ILS sector is developing fairly slowly.
“We believe that Guernsey still holds a number of advantages – the responsiveness of our regulator, our experience in the sector, the breadth of our offering in the funds and insurance space, and our status outside of Solvency II.
“Although London is nominally a competitor, if London can make a contribution to drive forward the growth of the ILS market, we think that should be good for all involved.”
Dominic Wheatley, Chief Executive of Guernsey Finance, who also took part in the roadshow, added: “Nowhere else can match Guernsey’s unique combination of funds, trust and insurance management expertise, and its ability to deliver bespoke complex products with consistent high quality.
“Following the claims of 2017 the market is strengthening and we are seeing real signs of the permanence of ILS as a key part of the reinsurance market. We are also seeing new capital coming to the market and hearing about innovative structures and business models that are innovating all aspects of the ILS value chain.”
