Reuters: Hong Kong moves to create regional hub for insurance-linked securities
Thu July, 2020, Age: 3 years
In March, the Hong Kong government introduced the Insurance (Amendment) Bill 2020, in hopes of joining the ranks of the United Kingdom and Singapore as a hub of insurance-linked securities (ILS). As per this article, “The bill provides a regulatory framework for insurers to transfer risk to the capital markets by issuing insurance-linked securities in Hong Kong through special purpose insurers, or SPIs. Special purpose insurers are essentially the same as the dedicated special purpose vehicles that are authorized in other jurisdictions to issue insurance-linked securities, or ILSs.” Passage of the bill would be part of Hong Kong’s goal of revitalizing its insurance industry. In addition, greater market share of the ILS industry would help Beijing support its international Belt and Road Initiative-linked infrastructure projects.