Originally published in Business Brief, June 2011
Christopher Anderson, Partner at
Carey Olsen in Guernsey, notes the
growing trend for insurance/investment hybrid structures which
enable investors to gain exposure to insurance risk through
non-insurance financial instruments, often referred to as insurance
linked securities.
In the current economic climate, good investment returns are
hard to come by. However, as they say, necessity is the mother of
invention and, in such a hostile environment investors often become
innovative in seeking the returns they or their stakeholders
demand.
The uncorrelated returns which insurance can provide is
attractive but investors are unable to gain exposure to insurance
risks directly without being an authorised insurer. Carey Olsen has
advised on the establishment of a number of insurance/investment
hybrid structures which enable investors to gain exposure to
insurance risk through non-insurance financial instruments
