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Launching an insurance-linked securities (ILS) market in the UK is a key deliverable over the next six months for the London Market Group (LMG), as the anticipated publication of ILS legislation and its enactment is seen as a critical piece of the London insurance and reinsurance market’s modernisation.

The UK government is targeting the release of a draft regulatory framework for insurance-linked securities (ILS) in autumn 2016, with the aim to have the framework implemented in early 2017 and said that the ILS work remains a government priority.

A professional panel met recently to discuss the establishment of guidelines and frameworks that would facilitate the utilisation of insurance-linked securities (ILS) business in Iran, according to the Insurance Research Center (IRC).

The impending release of new insurance-linked securities (ILS) legislation by the UK government could help the London insurance and reinsurance market take on a more active role in creating products to support resilience in developing markets, according to the LMG’s CEO.

The UK Treasury continues to target having its insurance-linked securities (ILS) legislation completed and passed by government for the end of this year and the London ILS initiative led by the LMG continues to aim for ILS business to be conducted in London from January 1st 2017.

The creation, with government support, of an efficient structure for insurance-linked securities (ILS) in the London insurance & reinsurance market, will help to secure the city’s future, according to Lloyd’s of London CEO Inga Beale.

The UK government’s draft regulatory framework for facilitating insurance-linked securities (ILS) and collateralised reinsurance business is progressing on its journey through the political houses, now reaching the Report stage in the House of Lords.

The London Market Group (LMG) said today that it welcomes the beginning of the UK government HM Treasury’s legislative work to put in place the framework to support the regulation and facilitation of an insurance-linked securities (ILS) market.

The UK government has begun to put in place the legal framework for facilitating insurance-linked securities (ILS) and collateralised reinsurance business, beginning with amendments to a financial services bill to allow a transformer vehicle to be established.

The work being undertaken in London, with the aim of making the city and its insurance and reinsurance hub a centre of excellence for insurance-linked securities (ILS), includes looking at developing ILS structures that would provide certainty in terms of equal credit for reinsurance and recovery.