London Market Group welcomes proposed framework to allow UK ILS

The London Market Group, the body formed to modernise the risk-transfer sector in London, has welcomed a consultation document released by the UK’s HM Treasury covering the key aspects of how a regulatory framework allowing the issuance of Insurance Linked Securities (ILS) would work.

Malcolm Newman, CEO of SCOR’s Paris-London Hub, Chairman of the International Underwriting Association and sponsor of LMG's ILS Working Group, said: “This is great progress in the first of LMG’s initiatives in creating an environment in which innovation can thrive in the London market. ILS has brought new capital and solutions to the market and we want London to be the centre for the future development of this business.

“The consultation is a key element of the legislative development process that we hope will mean the new ILS framework becomes law by the end of 2016. This document covers the key issues that need to be resolved: regulation and authorisation, corporate law and finally taxation – and it gives a very clear basis for an industry response. LMG will be participating fully in this consultation and would encourage all interested parties to respond with their views.

“The market has a wealth of experience to offer government to help develop the detail behind some of their proposals, for example their experiences of dealing with other regulatory regimes around the world which might guide the regulatory debate. The ILS taskforce will offer this expertise to the government to continue the strong partnership that has delivered to date.

“The government has listened to our requests and responded very proactively, it is now time for the insurance sector to play its part to help bring ILS business onshore to the London market.”