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The insurance industry is looking at the means to develop new business models that rely on the mining of large data sets in order to identify customers, price risk and analyse claims. Not only does the application of artificial intelligence (AI) have the potential to reduce costs by reducing headcount, it also has the potential to improve the accuracy and speed of decision-making and transform business processes. Ultimately, the benefits of AI should be significant…
The Risk Transformation Regulation 2017 which introduces the legislative framework for the creation of an Insurance Linked Securities (ILS) market in the UK has now come into effect. The aim of the new regime is to ensure that the UK can be a major contributor to the growth and development of the global ILS market. We reported on the draft legislation in a previous blog post. The Risk Transformation (Tax) Regulation 2017 will come…
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have published policy statements on the authorisation and supervision of Insurance Special Purpose Vehicles (ISPV). ISPVs issue insurance linked securities (ILS) which transfer risks to the capital markets.…
HM Treasury has now published a formal consultation on legislation to implement a new regulatory, corporate and tax framework for insurance linked securities (“ILS”) business in the UK. This latest consultation follows the March 2016 initial consultation which sought feedback on the overall approach that the UK should take to develop a more competitive market for alternative risk transfer (see our blog post UK embraces ILS structures on 4 March 2016). The regime is expected…
HM Treasury has now published a formal consultation in relation a new regulatory, corporate, insolvency and tax framework for insurance linked securities (“ILS”) business in the UK. The Government’s aim is to reinforce London’s standing as the world’s leading insurance market by creating the necessary legal environment to allow the domicile of ILS issuers in the UK. Part of the proposal is to create protected cell companies (“PCCs”), which would be one of the more…