The Financial Times has recently reported that the UK Treasury is on the verge of drafting and promoting new legislation, still to be approved by the UK Parliament, to allow Insurance Linked Securities to be issued from London as of 2017.
Assuming that all regulatory and taxation concerns can be addressed, this should theoretically allow London to compete directly with Bermuda (and other offshore jurisdictions) for a share of the growing ILS market.
As the article reports, “London has missed out on much of the [ILS] business as the UK does not have rules which allow ILS to be issued. Instead, they tend to be issued in offshore locations such as Bermuda, the Cayman Islands and Guernsey“.
This development follows a Treasury consultation exercise earlier in the year: https://www.ft.com/content/c62af2c4-dfc2-11e5-b67f-a61732c1d025
For more information, see the London Market Group’s website and press release, available at http://www.londonmarketgroup.co.uk/press-release-lmg-welcomes-governments-confirmation-of-early-2017-for-ils-legislation