With the consultation on reforms to the UK’s insurance special purpose vehicle (ISPV) regulatory regime underway, Sam Woods, the CEO of the Prudential Regulation Authority (PRA) has highlighted this as a priority for driving competitiveness and growth.As we , the consultation on reforms for the insurance special purpose vehicle (ISPV) regulatory regime, which includes an accelerated pathway for certain catastrophe bond applications and a 10-day target for approvals of certain insurance-linked securities (ILS) arrangements, was officially launched.Laying out the PRA’s priorities for 2025 in a letter to Prime Minister Keir Starmer, Woods highlighted these updates to the UK ILS regulatory regime.Woods explained that improving the UK framework for Insurance Special Purpose Vehicles (ISPVs), including simplifying and accelerating the ISPV authorisation process, as an area that can contribute to growth for the country.

“re specialised vehicles which allow investors to provide capital to insure a variety of risks, often used to cover losses from major catastrophes such as hurricane damage (sometimes called ‘catastrophe bonds’).“To date, the majority of such entities have been set up in other international jurisdictions such as Bermuda.This year we plan to make changes to the UK framework for ISPVs, which should contribute to the UK’s international competitiveness and growth by making it more desirable to establish UK ISPVs, and providing more diversification opportunities for investors and additional sources of capital and reinsurance capacity.” It’s worth noting that the Lloyd’s insurance and reinsurance market has been able to make the current regulations work well to its advantage.

, Lloyd’s London Bridge risk transformation and insurance-linked securities (ILS) platform has now seen $1.92 billion of capital deployed through its cells, with $2.55 billion of capital committed, providing clear evidence that the appetite is there among investors to access insurance risks through these structures in the UK...All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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