Gibraltar confident on ILS growth despite looming UK competition


Gibraltar confident on ILS growth despite looming UK competition

Albert Isola, Minister of Commerce Gibraltar

Gibraltar wants to become a hub for insurance-linked securities (ILS) and Minister of Commerce Albert Isola is optimistic about the growth potential despite looming competition from the UK.

The first ILS transaction in the jurisdiction, a €100 million collateralised reinsurance, for gambling company Lottoland was finalised in 2015 and renewed in 2016. 

Gibraltar believes that its passporting rights into the UK both currently and post Brexit provide an opportunity to partner with the London insurance market and support its ambitions to originate and structure ILS transactions. 

ILS, which is mainly used to provide cover for natural catastrophes, has been growing in recent years, driven by investors looking for yield in a historically low interest rate environment. In 2016 the total nominal amount of outstanding ILS was $26.9 billion, which compares to around $10 billion in 2006, according to a March Bermuda ILS Market Report.

Gibraltar, Albert Isola,ILS, Regulation, Alternative Capital, Europe

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