The city hopes to become a regional leader in ILS product
transactions, surpassing Singapore to eventually parallel
Bermuda's success in the US and European markets.
The launch of Hong Kong's first catastrophe bond (cat
bond) in October signalled the start of a new era for Asia's
insurance market.
Greater Bay Re, an insurance-linked securities
(ILS) special purpose vehicle
(SPV) that is backed by both state-owned China Re
and the state company's subsidiary China Property and
Casualty Reinsurance, issued the bond. Aon was responsible for
marketing the bond, which covered areas of mainland China that are
particularly exposed to typhoon risk, to specialist funds and
investors.
The Hong Kong Insurance Authority's (IA)
CEO, Clement Cheung, said at the time that Greater Bay Re could be
the first of many such vehicles to emerge from the mainland and the
wider region.
