Key takeaways

• The UK Government has launched a review of risk and tax regulations, with a view to making the UK a global hub for Insurance Linked Securities ("ILS").
• The PRA and FCA are working on new supervisory regimes and guidelines regarding Insurance Special Purpose Vehicles to facilitate the ILS market in London.
• The ABI has responded to the UK Treasury Select Committee’s inquiry into the implementation of Solvency II. The ABI has broadly supported the introduction of Solvency II as a positive development for the UK insurance market.
• The PRA has published updated policy statements on Solvency II regarding model drift and Directors’ letters.