Innovation is a vital element in transitioning through the current reinsurance market challenges. Insurance Linked Securities (ILS) are an innovative way for reinsurance risk to be transferred to the capital markets.
Malta is the only full EU jurisdiction which allows for both Reinsurance Securitisation Vehicles (RSPVs) and Securitisation Cell Companies (SCCs) for ILS transactions. This development has paved the way for the establishment in Malta of the first Solvency II compliant SCC platform in the EU.
This panel aims at discussing product innovation, providing practical information about insurance and reinsurance securitisation and how these apply to Malta’s securitisation offering. The discussion will revolve around the following topics:
- How securitisation of insurance risk works – the main structures
- The development and current trends in securitisation of reinsurance risk
- The features of recent securitisation deals of insurance risk by corporations and Government entities
- Future possibilities for the securitisation of insurance risk
- Why Malta is a domicile of choice for structuring securitisation transactions
- The legal framework and tax rules for Maltese securitisation vehicles, including the unique provisions of Malta’s Securitisation Act and Reinsurance Special Purpose Vehicles (RSPVs) Regulation
- Recent legislative developments, including the recent introduction of regulations for SCCs
- The provision of insurance management services in an ILS context
- The benefits of Maltese securitisation vehicles to originators and investors in the ILS sector