30 December 2022
The Insurance Authority (IA) today (30 December 2022) welcomed the third issuance of insurance-linked securities (ILS) in Hong Kong, a catastrophe bond amounting to US$32.5 million (equivalent to about HK$253 million) sponsored by PICC Property and Casualty Company Limited via a special purpose insurer titled Great Wall Re Limited to provide coverage for earthquake risks in China.
“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. 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,” said Mr Clement Cheung, Chief Executive Officer of the IA.
“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,” he added.
This issuance is eligible for the Pilot ILS Grant Scheme rolled out by the Government in May 2021, which offers up to HK$12 million for each application.
Ends