The Guernsey insurance-linked securities (ILS) sector believes that it can work closely with the developing market in London, following a roadshow earlier this year that saw visits from lawyers and industry representatives in both Zurich and London.
London’s ILS regulations entered into force in December 2017 and have been slow to take off since.
Peter Child, managing director of Artex Risk Solutions in Guernsey and chairman of the Guernsey International Insurance Association’s market development committee, was part of the roadshow.
Child said that, despite London normally being a competitor, if the English capital can make a contribution to aid the growth of the ILS market it should be good for all involved.
He added: “We gained the view from those that we spoke to is that London could be seen as complementary to Guernsey’s ILS sector.”
“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.”
Chief executive of Guernsey Finance, Dominic Wheatley, who also took part in the roadshow, said Guernsey was unmatched in it’s “unique combination of funds, trust and insurance management expertise, and its ability to deliver bespoke complex products with consistent high quality”.
Wheatley continued: “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.”