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Specialist Lloyd’s and Bermuda insurance and reinsurance company Neon Underwriting has now received approval from the UK’s Prudential Regulation Authority (PRA) for the first insurance-linked securities (ILS) vehicle to be launched in the country since its new ILS regulatory regime was introduced.

Specialist Lloyd’s and Bermuda insurance and reinsurance company Neon Underwriting has become the first to make an official application to undertake an insurance-linked securities (ILS) transaction in the UK, according to a report.

The approval of the UK’s Risk Transformation Regulations 2017 and the Risk Transformation (Tax) Regulations 2017 yesterday by a Parliamentary Delegated Legislation Committee, will ultimately help to “grow the ILS pie”, according to the Chairman of the London Market Group’s (LMG’s) ILS Taskforce.

A UK government cross-party parliamentary committee has just completed a meeting in which it approved the Risk Transformation Regulations 2017 and the Risk Transformation (Tax) Regulations 2017, which will make up the UK ILS regulatory regime, but not without pertinent questions from those attending.

This afternoon the United Kingdom’s insurance-linked securities (ILS) and risk transformation regulations are to be debated by a cross-party parliamentary committee who will debate the measures and get to give the final approval before the new rules are enacted.

The Bank of England’s Prudential Regulation Authority (PRA) has now assessed the United Kingdom’s insurance-linked securities (ILS) and risk transformation regulations and has now published its supervisory guidance on the ILS rules, which raise a few questions on how practical their implementation will be.

The United Kingdom’s insurance-linked securities (ILS) and risk transformation regulations were finally laid formally before the Parliament yesterday, one of the final steps required before they can be utilised by any ILS managers or reinsurers looking to transact collateralised reinsurance in the country.

The UK rules on insurance-linked securities (ILS) were supposed to have come before the Parliament in late September, but this has been delayed by the political conference season and as a result there is a fear that the regulation may not be finalised soon enough for any January renewal ILS deals to be transacted.

The UK government has published its finalised regulations that it says “introduce a competitive regulatory and tax regime” for insurance-linked securities (ILS) business and will help to ensure that the country remains “at the forefront of the global reinsurance market.”

As the insurance-linked securities (ILS) industry continues to expand its remit and share of the global re/insurance market, London must respond to the opportunity through investment in innovation and by leveraging its expertise, talent and location, according to market experts.