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With an insurance-linked securities (ILS) regime now in place in London, Guernsey believes it can work hand-in-hand with the capital.
Guernsey Finance, which hosts the ILS Insight event happening on July 05 at the AURA Events Hall in Zurich, believes that the two ILS markets are potentially complementary. This was the suggestion put forward by Peter Child, chair of the Guernsey International Insurance Association’s market development committee.
“The view from those that we spoke to is that London could be seen as complementary to Guernsey’s ILS sector,” said Child, who was part of an earlier roadshow ahead of the July conference. “While there is demonstrable political will to see the London ILS offering thrive, maintaining its insurance sector’s reputation as a full-service centre capable of delivering a full range of insurance and reinsurance services, it is clear that the ILS sector is developing fairly slowly.
“We believe that Guernsey still holds a number of advantages – the responsiveness of our regulator, our experience in the sector, the breadth of our offering in the funds and insurance space, and our status outside of Solvency II.”
Expected to attract over 100 professionals from across the realm of ILS, this year’s edition of ILS Insight will feature not only a panel discussion examining the impact of Hurricane Irma and other natural catastrophes on the industry, but also a technical showcase demonstrating Guernsey solutions in true convergence, life transactions, as well as blockchain use in ILS.
As for working closely with London, the prospect is thought to be a win-win situation.
“Although London is nominally a competitor, if London can make a contribution to drive forward the growth of the ILS market, we think that should be good for all involved,” explained Child, who is also managing director of Artex Risk Solutions in Guernsey.
Also part of the pre-conference roadshow was Guernsey Finance chief executive Dominic Wheatley, who promises “an exciting event at an interesting time for the ILS market.”
Wheatley said: “Nowhere else can match Guernsey’s unique combination of funds, trust and insurance management expertise, and its ability to deliver bespoke complex products with consistent high quality. Following the claims of 2017, the market is strengthening and we are seeing real signs of the permanence of ILS as a key part of the reinsurance market.
“We are also seeing new capital coming to the market and hearing about innovative structures and business models that are innovating all aspects of the ILS value chain.”
Guernsey Finance is the promotional agency for the island’s finance industry internationally.
