Fiona Le Poidevin of Guernsey Finance explains what
makes Guernsey an attractive location for ILS.
The insurance-linked securities (ILS) sector is gaining traction
across the globe as it evolves from what was previously regarded as
a niche market to one that is a recognised, independent asset
class.
For Guernsey's financial services industry this has come as
no surprise. Our service providers and practitioners have long been
aware of the benefits ILS products can offer insurers and
investors, particularly as risks continue to diversify and grow
around us.
Insurers like ILS because it enables them to purchase additional
protection for low frequency, high severity losses, including
natural and non-natural perils, operating in the traditional
insurance market, typically in the form of catastrophe or
"cat" bonds, collateralised reinsurance or industry loss
warrants. For investors, ILS products are attractive because
returns are non-correlated with the general
