Hong Kong’s Insurance Authority (IA) has welcomed the third issuance of insurance-linked securities (ILS) in Hong Kong – a catastrophe bond worth US$32.5 million (SG$43.6 million) sponsored by PICC Property and Casualty Company.
The issuance will provide coverage for earthquake risks in China and was conducted via a special purpose insurer called Great Wall Re Limited.
“The arrival of a second ILS issued in Hong Kong by major Mainland insurance groups reinforces our crucial role as a risk management centre, serving unique needs of the country while offering full and open access by the rest of the world,” said Clement Cheung, IA chief executive officer. “As efforts are stepped up to increase the number and variety of ILS issuances, a vibrant ecosystem comprising key players on the value chain will soon take shape in Hong Kong.
“The IA will sustain collaboration with industry stakeholders to realise different goals set out in the Development Roadmap for the Insurance Sector in Hong Kong and elevate our global competitiveness as an international finance centre.”
This issuance is eligible for the Pilot ILS Grant Scheme rolled out by the Hong Kong government in May 2021, which offers up to HK$12 million for each application.
