London Bridge Risk PCC Ltd. news

The Bank of England’s Prudential Regulation Authority (PRA) confirmed this morning that it is working on making changes to its insurance-linked securities (ILS) regime, with a view to bringing greater flexibility and speed to the regulatory process.

UK parliamentary group, the House of Lords Industry and Regulators Committee, has told the government that following an inquiry into commercial insurance and reinsurance regulation, it believes the “inflexible culture” of the regulators has held back the countries ambitions to develop new forms of business.

The Lloyd’s insurance and reinsurance market is understood to be in active discussion with financial market regulators over an expansion of the regulatory approvals for its insurance-linked securities (ILS) structure London Bridge Risk PCC.

As many Lloyd’s and London market insurers retreat from the catastrophe space, amid elevated losses and the uncertain but increasing impacts of climate change, some underwriters could look to alternative reinsurance capital sources to help maintain their cat portfolios.

At a time when London’s market share in reinsurance has stagnated, the insurance-linked securities (ILS) sector in the United Kingdom and its failure to gain traction so far is an example of regulation failing to support the market’s ambitions, representatives of the House of Lords heard in a hearing yesterday.

Speaking to insurance-linked securities (ILS) funds and investors in 2022, the London insurance and reinsurance market is seen as a venue where deploying capital to access differentiated insurance or reinsurance-linked returns is increasingly attractive, but still ease of access is cited as a problem.

A UK parliamentary group, the House of Lords Industry and Regulators Committee, has launched an inquiry into commercial insurance and reinsurance regulation, to assess its effects on the competitiveness of the London market.

Nephila Capital’s new specialty lines focused Syndicate 2358 at Lloyd’s was funded via the market’s insurance-linked securities (ILS) structure, London Bridge Risk PCC.

According to a study undertaken by Aon’s UK Capital Advisory team alongside the Lloyd’s Market Association (LMA), some syndicates at Lloyd’s have been frustrated by the LCM5 catastrophe controls, while not every player has an appetite for third-party capital or to use the London Bridge Risk PCC ILS structure.

The London Bridge Risk PCC insurance-linked securities (ILS) structure that enables quota share access to the Lloyd’s insurance and reinsurance market for third-party investors helps to “simplify” investment structures for the first backer of a deal, Ontario Teachers’ Pension Plan (OTPP).