Investing In ILS Through Guernsey

HFMWeek (HFM): How has the global insurance-linked securities (ILS) market developed over the past 12 months?

Richard Searle (RS): The global ILS market has developed significantly in recent years with 2014 showing a record breaking year with over $24.3bn on risk covering catastrophe bonds at 31 December 2014, according to the Aon Benfield fourth-quarter 2014 update. Strong investor demand has fed larger transactions across the market with coverage being extended into a variety of risks, some of which are outside the traditional catastrophe bond market.

HFM: Will the changes announced in this year's UK budget (allowing ILS to be domiciled in the UK) affect other jurisdictions in terms of competition and volumes of business? What can Guernsey offer that the UK cannot?