guernsey

In spite of the unprecedented impacts of the Covid-19 pandemic on sectors of all shapes and sizes, when it comes to servicing the insurance-linked securities (ILS) sector during this challenging time, Guernsey did not miss a beat.

The Channel Island of Guernsey continues to push innovation for the insurance-linked securities (ILS) sector, as it seeks to provide new options that meet the needs of those seeking risk transfer, those managing the risks and the end-investors, by the enactment of flexible legislation.

Guernsey has launched a new hybrid insurance-linked securities (ILS) vehicle, an all-in-one structure that can act as both re/insurer and ILS fund, which aims to make ILS fund managers operational lives easier.

Insurance-linked securities (ILS) and collateralised reinsurance activity in the island domicile of Guernsey has accelerated in 2018, with more than double the number of ILS structures established in 2018 so far compared to the whole of last year.

As the insurance-linked securities (ILS) market continues to expand the need for new structures and increased efficiency is growing across the sector, a trend that has seen the island domicile of Guernsey push for the development of a more transparent vehicle for investors that supports “true convergence” in ILS.

The island domicile of Guernsey has experienced higher insurance-linked securities (ILS) and collateralised reinsurance activity in 2018 so far, compared to the prior year, as use of its protected cell company (PCC) structure continued to increase and now aims to innovate to drive further market growth.

Insurance-linked securities (ILS) and collateralised reinsurance business dominated new business generated through vehicles registered during 2015 in Guernsey, as the domicile continued to prove an attractive location for ILS transactions to be completed in.

First-half 2015 insurance and reinsurance company registrations in Guernsey show that the domicile continues to have success in attracting collateralised reinsurance, ILS and longevity risk transfer related protected and incorporated cell business.

Robus, the Guernsey based independent insurance manager and owner of the Hexagon PCC which works with ILS managers and investors to facilitate protected cells for collateralized reinsurance deals, has added two new directors to its team.

Of 85 insurance and reinsurance vehicles licensed in Guernsey during 2014, 45% of the business underwritten during the year was insurance-linked securities (ILS) related, demonstrating the domiciles attractiveness for ILS transactions.