In this paper, Milliman’s Kevin Manning and Eamonn Phelan and Secquaero’s Scott Mitchell explore the reemergence of insurance-linked securities (ILS) in the life industry. They also discuss how ILS can benefit life insurers and reinsurers in the context of the evolving regulatory and accounting environment as well as the increasing focus on proactive management of risks, capital, and liquidity.
On Tuesday, 13 September, I participated in a panel discussion on packaged retail and insurance-based investment products (PRIIPs), along with Kevin Manning, a principal from the Milliman Dublin office. The event was cohosted by Silverfinch and Maples & Calder in London. Attendees of the event, including a mix of insurers, asset managers, and data providers, expressed various views on the potential outcome of the vote by the European Parliament on the PRIIPs Level 2 regulatory technical standards (RTS), scheduled for the following day, and the possibility of a delay.
Yesterday, the European Parliament backed the view of the Economic and Monetary Affairs Committee to reject the Level 2 RTS for implementing the new PRIIPs legislation, on the basis that the RTS did not protect PRIIPs consumers. While many of the attendees at the panel discussion the day before had predicted this outcome, most contributors highlighted the need for clarity on the road map for PRIIPs implementation—something that yesterday’s vote did not deliver.