The London Market Group (LMG) has confirmed the UK government’s plans to implement an insurance linked-securities (ILS) strategy for early 2017.
LMG received a letter from Simon Kirby, the economic secretary to the treasury, in which he laid out timings and the next steps towards the ILS project in London.
The update comes following the treasury’s consultation on the overall approach to the regulation and taxation of ILS special purpose vehicles. The next stage will be to finalise the regulations and implement the new framework.
Kirby said: “The role that London plays as a global hub for specialist insurance and reinsurance is an important part of the UK's financial sector exporting strength.”
“Given the increasing importance of alternative risk transfer techniques, the ILS project aims to provide London with the framework it needs to remain a world leader in reinsurance. I am very grateful for the productive contribution that the LMG has made to this project.”
Nicolas Aubert, chairman of the LMG, added: “We are heartened to hear that the ILS project remains a priority for the treasury, and we very much look forward to working with them to ensure successful implementation of the UK's new ILS framework as soon as possible in 2017.”
