Insurance Linked Securities - Beyond the Basics
December 2017 saw the passing of the Risk Transformation Regulations 2017 and the Risk Transformation Tax Regulations 2017 and the realisation of George Osborne’s mission to rival offshore jurisdictions in the pursuit of innovation for the £1.9 trillion invested assets market that represents the UK’s Insurance Market (Q1 2020 PRA).
Since that time a number of innovative transactions have taken place, and more are in the pipeline.
It is thought that 2021 will see a boom in the development of this market.
This new virtual classroom seminar will look at the opportunities for your clients to be introduced to this market as an additional tool to manage risk but also to participate in an investment in an uncorrelated asset class.
- What are insurance linked securities?
- What is the legislation and regulations that govern them?
- How do these securities operate, why did the UK make innovative tax changes to ‘enable’ this market and what are those tax changes/ongoing proposals for further change?
- What does it mean to have capital markets support insurance risk as opposed to the traditional reinsurers?
The session is suitable for advisers to insurers and reinsurers, capital markets providers, pension fund trustees and employers, private equity, hedge and insurance linked securities funds and investors.
It anticipates some understanding of insurance risk and capital markets but explains how these concepts are relevant to this type of security.
What You Will Learn
This live and interactive session will cover the following:
- The insurance and reinsurance markets and how risk is traditionally transferred
- What is an insurance linked security?
- The origin of the insurance linked securities legislation and regulations
- The task force and the development of the work in association with Her Majesty’s Treasury
- Legislation and regulations including the innovative tax treatment
- Insurance transformers and insurance special purpose vehicles (‘ISPVs’)
- Updates regarding consultation on revising the rules. How is the security treated by the London Stock Exchange (January 2021) and what other new proposals are being considered?
- The types of transactions that have occurred and explanation of the types of risks being transferred using insurance linked securities
- Precedents and future developments
Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.