The Hong Kong Insurance Authority welcomed the issuance in Hong Kong of a US$35 million catastrophe bond sponsored by Taiping Reinsurance Company Limited through a special purpose insurer, Silk Road Re Limited. The bond provides three years of protection against named storms in the United States and earthquakes in Mainland China, starting on 1 January 2025. This is the sixth insurance-linked security issued in Hong Kong and the first locally issued ILS linked to multiple perils and triggers. The Insurance Authority noted that, since the introduction of a bespoke regulatory regime and a pilot grant scheme in 2021, the six ILS issuances total US$748 million.
Hong Kong Insurance Authority 2025-01-02
Hong Kong Insurance Authority welcomes US$35 million catastrophe bond covering US named storms and Mainland China earthquakes
The Hong Kong Insurance Authority announced a US$35 million catastrophe bond by Taiping Reinsurance through Silk Road Re, covering U.S. storms and Mainland China earthquakes for three years. This is the sixth insurance-linked security (ILS) issued in Hong Kong and the first linked to multiple perils. Since 2021, Hong Kong's regulatory regime and pilot grant scheme have facilitated ILS issuances totaling US$748 million.