The inaugural catastrophe bond issuance in Hong Kong is a clear vote of confidence in the Special Administrative Region (SAR) and a sign of the exciting opportunities that lie ahead, according to regulator the Insurance Authority (IA).
The implementation of Hong Kong’s insurance-linked securities (ILS) regulatory regime and the legislation necessary to establish special purpose insurance or reinsurance vehicles for securitisations and issuance of catastrophe bond notes, is an initiative that has been portrayed as having close ties to mainland China.
This work culminated in the successful issuance of the first catastrophe bond in Hong Kong last month, with the $30 million Greater Bay Re Ltd. (Series 2021-1) cat bond sponsored by mainland and state supported reinsurance giant, China Re Group.
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