BOE’s Carney warns on low rates driving capital into reinsurance

The Governor of the Bank of England Mark Carney has spoken out on capital inflows into reinsurance, saying that a 'soft cycle' in the financial markets (referring to interest rates) is driving capital into reinsurance and causing a soft cycle there. Carney speaking today at the Institute and Faculty of Actuaries read the full article →

Isle of Man the latest domicile seeking to enter the ILS & cat bond space

The Isle of Man’s Insurance and Pensions Authority (IPA) is the latest offshore domicile which is seeking to introduce insurance special purpose vehicle (SPV) legislation, as it hopes to attract insurance-linked securities (ILS) and catastrophe bond business. A number of domiciles have expressed a desire to attract more ILS, cat bond read the full article →

BoE’s Mark Carney warns on re/insurer investment strategies

Governor of the Bank of England Mark Carney warned that insurers need to be accountable for their actions today and that the Bank of England is watchful of any risks from moves such as insurers or reinsurers adopting more aggressive investment strategies. In a piece written for the UK newspaper the read the full article →

Puerto Rico targets catastrophe bond and ILS business

Another offshore domicile has thrown its hat into the ring to compete for catastrophe bond and insurance-linked securities (ILS) business. Puerto Rico is reportedly the latest domicile to amend its insurance legislation in an attempt to bring the ILS sector to its shores. According to this article in Captive Insurance Times read the full article →

IRS proposes to treat weather, catastrophe and longevity derivatives as notional principal contracts

Newly proposed regulations from the U.S. Internal Revenue Service (IRS) could change the way certain over-the-counter derivative transactions are treated for taxation purposes. The proposal would generally allow for OTC derivatives which are based on objective non-financial information to qualify as notional principal contracts (NPC's). Law firm Sidley Austin LLP have read the full article →

SEC’s proposed ABS regulations and their applicability to insurance-linked securities

The U.S. Securities and Exchange Commission (SEC) has been seeking to bring proposed rules into force regarding new shelf eligibility requirements for asset-backed securities (ABS). The proposed rules seek to enforce greater accountability and enhanced quality around ABS when an issuer uses a shelf registration process. The rules to revise the read the full article →

Tennessee captive law now allows for insurance securitization entities

The Tennessee legislative and Governor Bill Haslem have implemented and signed into law a new bill designed to make the state a more attractive place for captive insurer formation. Amongst various changes to the way captives are governed in Tennessee of most interest to us is the introduction of a read the full article →

New Cayman Islands insurance law to tighten regulation of cat bond SPV’s

The Cayman Islands government has been working on a new set of laws to govern it's insurance industry and the licensing of insurers and captives on the islands. Cayman has become the main domicile for cat bonds in recent years and plays host to many captive insurers as well. The read the full article →

Investors and sponsors: Making the marriage work – insurance securitisation, social utility and the IAIS

Today I happened across a great article written by Barlow Lyde & Gilbert LLP (a leading international law firm with a big reinsurance practice) which takes a look at the recent International Association of Insurance Supervisors report (as we wrote about here) and seeks to answer some of the questions read the full article →

Bermuda to encourage cat bonds with new rules for SPI’s

The Financial Times reports that the Bermuda Monetary Authority will be announcing new regulation today aimed at improving supervision for Special Purpose Insurers. Bermuda has long been a hub for special purpose vehicles, insurers and has been the domicile for many catastrophe bond deals over the years. The forthcoming approach to read the full article →