Insurance linked securities consultation

Insurance linked securities are an alternative form of risk mitigation for insurance and reinsurance firms. In contrast to conventional cover arranged with a reinsurance company, they offer investors a means of transferring risk to the capital markets and have helped to expand the capacity of the reinsurance market.

This consultation focuses on the government’s plan to attract more insurance linked securities business to the UK in order to strengthen the UK’s position as a leading global hub for specialist reinsurance.

Topics covered:
• The growth of ILS business.
• The government’s ILS project.
• Authorisation and supervision of insurance special purpose vehicles.
• Corporate structure for insurance special purpose vehicles.
• Taxation of insurance special purpose vehicles.