Where organisations don't have the means to innovate themselves, surely seeking partnerships with Disruptors who do is a sound strategy. But you don't always have to partner with the next big thing... Sometimes seeking help from more established sources can pay dividends.
The increasingly heavy regulatory burden of being an Insurer or Reinsurer in London, whilst enhancing operational capabilities and solvency, has made is a very challenging market to operate in. The close relationship that the sector has forged with the UK government however, could pay dividends as the London Market Group work with HM Treasury to seek an innovative solution to make London an attractive place for ILS business.
if a transformer or other ILS vehicle and structure can be created, in the London insurance and reinsurance market, which makes achieving full credit for risk transfer, reinsurance and recovery a simple process, with little to no additional legal or structuring overhead, it could be an extremely compelling reason to transact in the city. That’s exactly the type of innovation that we’ve been saying London needs on ILS all along, daring to bring something different to the market which provides real-world and tangible benefits to ILS cedants and that could make it even simpler on the investor or capital provider side as well.