Continuing on from our last blog which highlighted the background to the emergence of the Building Society market, we are looking in more detail at the regulatory journey the sector has been on. In our next blog we will be taking a more detailed view on how regulation is impacting the market now and in the future. We will look at how the current situation and future impacts on the sector.
With another 3 months still to go, 2016 has already been quite an eventful year. The renewal season was kicked off with the pre-Rendezvous AM Best Reinsurance outlook. Some of the issues covered were woven like a red thread throughout the Monte Carlo Rendezvous, the Guernsey ILS roundtable and will certainly be discussed during other events such as the ECF in Luxembourg in November this year.
The OECD BEPS (Base Erosion and Profit Shifting) strategy 2015 is currently being rolled out globally. With many corporations in a preparation phase, the impact on the captive insurance market is starting to cause concern.
With ILS (insurance-linked securities) heading into the London Market, every effort is being made to push the corporation tax legislation through in 2016. UK companies will then be able to make the most of the business opportunities on offer.
So, what is this ILS regulation and what makes it different from traditional (re)insurance?