Guernsey should take the UK ‘seriously’ as it sets up an insurance-linked securities (ILS) regime in London, according to Stewart McLaughlin, executive director at Aon Risk Solutions.
McLaughlin suggested that one of the reasons for concern is that the UK’s initial plans have been “comprehensive” and the ILS taskforce has a “very strong” panel of members with a wealth of experience.
He added: “I understand some of the roadblocks include how the UK will provide a tax neutral environment, expedient regulatory approval and implementing protected cell company legislation—three major hurdles that have to be overcome.”
McLaughlin said: “When London states it is seeking to be the centre for the future development of this business, Guernsey needs to take them seriously. Guernsey is mindful of the competitive forces and continues to innovate and introduce improvements to its ILS environment, for example, the special purpose insurer regime improvements Guernsey Financial Services Commission issued in September, to stay out in front.”
The UK government closed its second consultation on the implementation of an ILS regime in January.
At the end of last year, UK government adviser Michael Wade said making London an ILS hub would be a potential “game changer” for the country.