special purpose reinsurance vehicle

Speed to market is a key characteristic of Bermuda’s ILS market, but when setting up your ILS vehicle, it is also important to consider what happens at the end of its economic life, says Louise Charleson, Partner, Ocorian Law (Bermuda) Limited.

Recent changes made by the Bermuda Monetary Authority (BMA) to improve processes specific for catastrophe and mortgage bonds, shows that the island is listening to its clients and being more adaptive in the face of growing competition, according to Brad Adderley, Partner at global law firm Appleby.

Catastrophe bond sponsors looking to locate their issuance structures in Bermuda can now benefit from much faster licensing and registration of new cat bond vehicles, with the process streamlined to take just three working days by the regulator.

Malta still has ambitions to eventually become a hub for insurance-linked securities activity, according to leaders from local re/insurance industry bodies, but barriers to entry continue to present a significant challenge for the jurisdiction.

Guernsey has updated its insurance-linked securities (ILS) rules in order to clarify the regulatory treatment of collateralised reinsurance transactions, add a full-featured SPI structure that can support catastrophe bonds and sidecars, and to speed up the approval to a one-day process.

An amendment to Malta’s laws that extends a value added tax (VAT) exemption to include authorised reinsurance special purpose vehicles (RSPV’s) set up in Malta will help to ensure the islands insurance-linked securities (ILS) framework is as attractive as possible to potential registrants of such vehicles.

Guernsey is seeking to build on its insurance-linked securities (ILS) and collateralised reinsurance activity by adding legislation to allow for special purpose insurance (SPI) vehicles, which could be catastrophe bond issuers, for the end of 2016.

Malta, a domicile targeting the insurance-linked securities (ILS), catastrophe bond and reinsurance convergence sector, has now completed its Securitisation Cell Company regulations which bring together the special purpose reinsurer concept with protected cells.

Malta, one of the domiciles targeting the insurance-linked securities (ILS), catastrophe bond and reinsurance convergence sector, has nearly completed its new regulations which will bring together the special purpose reinsurer concept with protected cells.

Specialist Bermuda-headquartered insurance-linked securities management, servicing, transformation and fronting firm Horseshoe Group has had its license to operate in Gibraltar approved, meaning Gibraltar is now open for ILS business.