While the advent of Solvency II saw the PRA stretched, the implications of a hard Brexit mean that it will be inundated with work, possibly way beyond its capacity. Clive O’Connell of McCarthy Denning rings the warning bell.
In November 2016, the British government announced its plans to allow London to operate as a centre for insurance-linked securities (ILS) business. These proposals are due to be made operational within the next few months.
This is exceptionally good news for a London Market facing the uncertainty of Brexit. It is designed to allow London to remain a global hub for risk transfer and to operate as a geographic centre pulling together the insurance industry and capital markets.
The London Market Group has exceeded the expectations of many in persuading the Treasury to provide a legal framework in which protected cell companies (PCCs) can operate and a fiscal environment which is competitive with all offshore centres.
Clive, O’Connell, London, Brexit, jurisdictions, insurance-linked