Guernsey has a thriving insurance linked securities (ILS) sector and is home to an abundance of ILS structures, including:
- hundreds of special purpose insurers (SPIs) writing billions of dollars of life and general risks for ILS funds and investors
- ILS funds, both private (often for a single, sophisticated investor) and blind pool managing billions of dollars of ILS assets
- ‘A’-rated reinsurance companies established by large scale ILS managers writing billions of dollars of gross written premiums annually.
Facilitating this success is a bespoke regulatory regime that has been specifically designed for the sector. Fast-track authorisation rules enable SPIs to be established and
regulated with immediate effect. These SPI Rules are designed to accommodate certain features that are peculiar to ILS transactions.