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As London takes the first steps towards being able to issue its own ILS deals, Intelligent Insurer assesses the potential of the new ILS framework and discovers that some market participants are bullish about its ability to gain traction quickly.
London is prepared to take on Bermuda by looking to become a global hub for insurance-linked securities (ILS) issuance. Many believe the potential is there: brand new legislation is setting the legal framework for ILS products, London as a regulatory jurisdiction is well recognised worldwide, and it can provide the necessary talent pool as a major re/insurance and financial centre.
The expectations are high and so is the ambition of some market participants, who believe London can offer more than the nat cat ILS products which are Bermuda’s specialty. ILS has the potential to transcend many other types of risks and the capabilities to make that happen within the London Market are certainly available.
“London contains the intellectual talent pool and access to capital markets in a small geographic area in the City of London,” says Malcolm Newman, CEO of SCOR’s Paris-London hub and chairman of the London Market Group’s ILS taskforce.
Guy Carpenter, Lloyd's, ILS taskforce, World Bank, Insurance-linked securities, Des Potter, Malcolm Newman, Inga Beale, Paresh Thakrar, London, Europe