Hong Kong's Financial Services and the Treasury Bureau welcomed the jurisdiction’s first insurance-linked securities sidecar, a USD 12 million issuance by PICC Property and Casualty Company Limited. The sidecar provides quota share reinsurance protection for offshore wind farm property insurance businesses in Mainland China, allowing investors to share the premiums, claims and underwriting results of the designated portfolio with the sponsor. The bureau reiterated plans announced in the 2026 Policy Address to promote insurance-linked securities with the Insurance Authority, review investor restrictions to support fund trading and explore legislation for protected cell companies to reduce issuance costs. Since Hong Kong established its bespoke regulatory regime and pilot grant scheme in 2021, seven catastrophe bonds and one sidecar have been issued, totaling about HKD 6.3 billion and covering catastrophe and other specialty risks in Mainland China and overseas.
Hong Kong's Financial Services and the Treasury Bureau welcomes first USD 12 million insurance-linked securities sidecar issuance
Hong Kong's Financial Services and the Treasury Bureau welcomed the jurisdiction’s first insurance-linked securities sidecar, a USD 12 million PICC issuance covering offshore wind farm property insurance in Mainland China. The bureau reiterated plans to review investor restrictions and explore a protected cell company framework to lower issuance costs.