BROADCASTS.com

On the final day of our recent ILS Asia 2021 event the audience was treated to an insightful discussion on the Asian catastrophe bond and ILS market from Cory Anger of GC Securities.
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\\nWith Hong Kong now established as a regulated domicile for insurance-linked securities (ILS) and catastrophe bonds, there could be several issuances out of the region by the end of 2021, according to Cory Anger.
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\\n\\u201cBoth the Chinese regulator and the Hong Kong Insurance Authority have been very supportive of sponsors, using a Hong Kong Special Purpose reinsurer for an ILS deal, whether it\\u2019s through the grant scheme, whether it\\u2019s working them through the regulatory approval process,\\u201d said Anger.
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As is the case in Singapore, in order to stimulate deal-flow out of Hong Kong the regulator has introduced a grant scheme which covers some of the costs of issuing a cat bond out of the region.
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This approach has been successful in Singapore with the number of issuances growing year-on-year, and Anger feels that by offering this incentive, Hong Kong has shown that it wants to make it a success.
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\\u201cI think they\\u2019re starting first with companies that haven\\u2019t yet brought as much risk to the ILS market, which is Chinese insurers and reinsurers. I think that that\\u2019s particularly exciting, because that\\u2019s really going to expand Asia risks that are available to the ILS market.
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\\u201cI think it\\u2019s very exciting what they\\u2019re doing and in particularly supporting China to be ceding risk outwards, out of the country. It will help risk takers understand the risk better, but also should be promoting more capital support in the Asia Pacific region, being sourced from the ILS market,\\u201d said Anger.