The long road to ILS for London

21-01-2016

The long road to ILS for London

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The government has made significant steps towards enabling the UK to become a centre for insurance-linked securities (ILS) business, but the devil will be in the detail writes Andrew Holderness, Global Head of Corporate Insurance Group at Clyde & Co.

Interest in insurance-linked securities (ILS) has been ramping up for some time and a quick look at the size of the market explains why. The participation of the capital markets and institutional investors in the insurance and reinsurance markets continued to grow in 2015, with insurance-linked investor inflows exceeding outflows, taking dedicated ILS capital to $70 billion for the first time, according to a recent report by Willis.

The size of the prize therefore is clear and ILS are now considered to be a significant part of the global reinsurance market. However, against this background, London has been losing ground. The London Matters report says that the city’s market share of the global reinsurance market fell from 15% to 14% between 2010 and 2013. 

The size of the prize therefore is clear and ILS are now considered to be a significant part of the global reinsurance market. However, against this background, London has been losing ground. The London Matters report says that the city’s market share of the global reinsurance market fell from 15% to 14% between 2010 and 2013.


ILS, London, reinsurance, regulations

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