Cat Bonds: An Essential Tool For China's Developing Catastrophe Insurance System

In its Opinions of the State Council on Accelerating the Development of Modern Insurance Industry (the "Opinions") dated 13 August 2014, the central government of China expressed its wish to build up its own catastrophe (or "cat") insurance system and to promote the development of the cat insurance market, including building up a multi-layers cat risk sharing system through commercial insurance as well as exploring diversified ways to deal with the perils of typhoon, earthquake, landslide, mudslide, flood, forest fire and other disasters.