Carrie Lam, Chief Executive of the Government of Hong Kong, sees “enormous potential” for catastrophe bonds and insurance-linked securities (ILS) to provide important disaster risk capital to underpin risks in the Greater Bay Area.
The Greater Bay Area, also known as the Guangdong – Hong Kong – Macau Greater Bay Area, is a megalopolis made up of nine cities and two special administrative regions in South China and a significant area of economic growth, rapid infrastructure and development, and so is seeing rapidly increasing insured values.
It’s always been seen as a region that will require significant access to insurance and therefore reinsurance risk capital and since launching its insurance-linked securities (ILS) regulatory regime, Hong Kong expects to see issuance of catastrophe bonds supporting risks in the Greater Bay Area.
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