Lloyd’s proposed plan for a dedicated platform to deploy and manage investor capital has received approval from the UK regulators, the Prudential Regulation Authority and Financial Conduct Authority.

It calls the approval for its multi-Insurance Special Purpose Vehicle a “key milestone” for the Future at Lloyd’s strategy which aims to create an insurance market attracting new forms of capital such as insurance-linked securities (ILS).

“As part of the Future at Lloyd’s strategy, we continue to look at all ways we can make it easier and more efficient to deploy and manage capital at Lloyd’s,” CFO Burkhard Keese said.

“We are delighted that Lloyd’s has received regulatory approval to set up a new investment platform that will be available for all of the market to use.”

With the approval, Lloyd’s sponsored the creation of London Bridge Risk PCC under the UK’s Protected Cell Company (PCC) legislation.

The PCC will provide an access point for both UK and international investors, including ILS investors, to deploy funds in a tax-transparent way into the Lloyd’s market.

Lloyd’s members will be able to use the new vehicle to manage their capital requirements by attracting new classes of investors such as pension funds and will benefit from reduced set-up times and lower transactional costs.

“Through our sponsorship of the London Bridge Risk PCC we will give investors the option of a new tax transparent way to participate in the market with standardised documents and a much simpler repeatable process,” Mr Keese said.

“ILS investment is not new to Lloyd’s, but this is the first time that a UK PCC has been set up as a platform to allow investors to back and provide capital to members at Lloyd’s.

“We look forward to working with investors and Lloyd’s members who wish to use this new PCC to structure their participation at Lloyd’s.”