Gibraltar has plans to become an Insurance Linked Securities (ILS) jurisdiction within the European Union. The ILS market has grown significantly in recent years and the total volume of catastrophe (cat) bonds and ILS issued in 2013 was more than $7.5 billion and by the end of the year there was an all-time high of $20.5 billion of outstanding cat bonds and ILS.
AON’s director and global ILS practice leader, Liz Frederick, recently provided ILS training for Gibraltar’s Financial Services Commission and a number of its accounting and legal firms. Frederick has previously trained other insurance regulators on ILS protocols.
Gibraltar’s insurance company (SPV) regulations of 2009 will serve as the primary legislation for Gibraltar to enter the ILS market and its 2001 PCC legislation is thought to be an attractive part of the offering.
The collective gross premium income for all of Gibraltar’s insurance companies exceeded $3.8 billion in 2012, while its motor insurers had a 16 percent share of the UK’s motor market.
Minister of financial services, Albert Isola, commented: “The Gibraltar insurance industry has grown significantly over the last ten years, in particular the motor sector. We are very proud of the progress that has been achieved and we are keen to develop other and complimentary areas of insurance.”
“We believe that insurance linked securities are offer one such opportunity. I am grateful for the support and effort that AON has provided in the recent training programme for the Financial Services Commission.”
