Targeting ILS in Europe


Gibraltar’s regulator recently issued its ILS guidelines. Michael Ashton, 
senior executive at Gibraltar Finance, tells Intelligent Insurer what this means for the jurisdiction and how it is seeking to establish itself as a leading ILS domicile.

As the insurance linked securities (ILS) markets continue to grow, competition is becoming fierce between domiciles to become the preferred jurisdiction for these deals. But while Bermuda dominates North American-based deals, Gibraltar eyes an opportunity to grab market share for European deals.

The Financial Services Commission (FSC), Gibraltar’s finance regulator, has issued new ILS guidelines that it hopes will help attract more deals. They deal with the approval process, the fee structure, and the types of transaction that can be based in Gibraltar.

Michael Ashton, senior finance centre executive at Gibraltar Finance, says the rules reflect dialogue with EIOPA and are also designed to factor in Solvency II. “The Gibraltar regulations have transposed the Reinsurance Directive, the principal European Union legislation which sets the standards to be followed for the establishment of special purpose vehicles (SPVs), and are Solvency II-compliant based on the most up-to-date EIOPA technical standards for SPVs,” he says.

Gibraltar, Gibraltar Finance, ILS, guidelines

Intelligent Insurer