PRA ISSUES NEW GUIDELINES ON ILS BUSINESS

The Prudential Regulation Authority (PRA) has issued new guidelines on ILS business. In the guidelines issued on November 1, the PRA has set a six-to-eight-week window to determine applications that are “relatively straightforward,” though it added approval may be faster “in some circumstances.” For complex cases, the PRA has given itself a six-month limitation on approvals. The PRA also said applicants would be free to discuss their proposal with the regulator prior to application. Despite its position as one of the world’s biggest insurance centres, the UK currently lacks the legislation to allow ILS to be domiciled in-country, and most ILS business is now handled in overseas jurisdictions with ILS-friendly legal and tax structures. The then Chancellor of the Exchequer, George Osborne, made a commitment to developing London as a hub for ILS business in a budget statement in March 2015.