Gibraltar FSC publishes ILS guidelines
The Financial Services Commission (FSC) of Gibraltar has issued insurance-linked securities (ILS) guidelines as it seeks to be fully Solvency II complaint.
The government, with the support and participation of ILS experts from around the world, has established a working group that provided industry expertise and feedback as the FSC finalised the ILS Guidelines.
Gibraltar plans to offer a new European Union (EU) domicile for cat bonds, sidecars and collateralised reinsurance-based ILS transactions and has been working closely with industry professionals to ensure the guidelines and processes are fit for purpose.
Albert Isola MP, Minister for Financial Services, said: "Gibraltar has a vibrant and growing insurance sector with some £3.6 billion of premium income in 2013. Last year the government set out to develop and attract new insurance activity to Gibraltar with the ILS sector being a serious target market.
“I am most grateful to all those individuals and companies, from Gibraltar and abroad, that have invested significant time and provided invaluable input and know-how to the working group over recent months. I am confident that with their support and contribution Gibraltar's ILS Guidelines provide both the commercial and regulatory frameworks to enable ILS business to flourish from Gibraltar."
Joe Perdoni, the recently appointed head of prudential at the FSC, said: "We look forward to working with the ILS industry to develop this new insurance sector in Gibraltar, within a strong regulatory framework. The working group has been very supportive and provided valuable market insight to the FSC and I thank them for their contribution.
“We fully appreciate the time to market under which the capital markets operate in the ILS sector and we are confident that our guidelines will support those market requirements whilst maintaining at all times a robust and highly professional regulatory environment."
