2 January 2025
The Insurance Authority (IA) today (2 January 2025) welcomed the issuance of a catastrophe bond amounting to US$35 million (equivalent to about HK$272 million) sponsored by Taiping Reinsurance Company Limited via a special purpose insurer titled Silk Road Re Limited, offering protection against named storms in the United States and earthquakes in Mainland China for three years starting on 1 January 2025.
“This is the sixth insurance-linked securities (ILS) issued in Hong Kong and the first locally-issued ILS tied to multiple perils and triggers. It reinforces our commitment to forging a holistic ecosystem that embraces data harvesting, catastrophe modelling, product design, investor education and talent nurturing as well as to narrowing the protection gap caused by the rising frequency and intensity of natural catastrophes,” said an IA spokesperson.
The six ILS issuances that took place since the introduction of a bespoke regulatory regime and a pilot grant scheme in 2021 involve a total sum of US$748 million (equivalent to about HK$5.86 billion).
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