Guernsey has agreed to allow insurance-linked securities cells
to benefit from rollover provisions, in a move which has been
welcomed by the island's thriving ILS sector.
The regulator, the Guernsey Financial Services Commission
(GFSC), has clarified a number of issues around the authorisation
process for ILS cells following talks with the Guernsey
International Insurance Association.
They include formally confirming the availability of a
"grace period" for the application of collateral at both
the formation of new Special Purpose Insurer (SPI) cells, and
renewal of deals in SPI cells, often referred to as rollover.
Katherine Jane, Director of Risk and Financial Stability at the
GFSC, said in a letter to GIIA that the Commission accepted that
the timing difference between a special purpose insurer committing
to a collateralised reinsurance transaction, and the point at which
the trust account is fully funded, was a commercial decision for
the ILS industry with
