Mr. Simon Lam, Executive Director, General Business at the Hong Kong Insurance Authority, anticipates the regions brand-new ILS routine to “hit the ground running” as mainland Chinas insurance market development continues apace.With the issuance of Greater Bay Re Ltd., sponsored by China Re, anticipated soon as the very first disaster bond to be provided out of Hong Kong, the insurance-linked securities (ILS) universe has a brand-new domicile to pick from.
Like Singapore, Hong Kongs program provides a grant scheme which covers some of the issuance expenses of cat bond deals, something which has assisted to attract sponsors to Singapores platform and which is viewed as important for brand-new domiciles to get traction.
Throughout the opening day of our recent virtual ILS Asia 2021 occasion, held in association with our headline sponsor AM RE Syndicate Inc., Mr. Lam, throughout an informative keynote, discussed some of Hong Kongs aspirations as an ILS residence over the coming years.
This interview can now be viewed on-demand here.
” I believe we ought to hit the ground running,” said Mr. Lam. “As I pointed out, we have strong assistance from the sponsors from the mainland insurance coverage market. If you take a look at how the mainland insurance market is growing, and how the danger is building up, theres certainly an extremely, extremely strong requirement to use the capital markets.”
While Hong Kong has ambitions to attract sponsors from all over the world, the entry of more Chinese sponsors into the marketplace promises to bring brand-new diversification, in terms of hazard and location, to the ILS financier base.
During his speech, Mr. Lam highlighted the need for more diversity alternatives within the ILS market, highlighting the value of presenting new underlying risks that are not yet present in the market.
” We desire to be able to do so by bringing the mainland threats into the capital markets through the ILS offering,” he explained.
At the same time, he continued, its very important for Hong Kong as a domicile to support additional and new ILS investors.
” Traditionally it would be extremely much United States and likewise European based ILS investors, however if you look at the way that ILS might be developing in Asia, I certainly see that there is a larger possible audience for ILS investors,” stated Mr. Lam.
Including, “So, therefore, if you put all those together, we want Hong Kong to be including to the development of the ILS market. We may be a brand-new rival, so to state, to the existing routine, however thats not what were after.
” We desire to be able to ensure that we do our task well, as I mentioned previously, be effective and as reliable as the other programs, so that the sponsor would have an option.
” And we also hope that by assembling a great platform, that United States or European based service companies will find it meaningful for them to think about to broaden into the Asian time zone, which is what is needed due to the fact that otherwise they will not be able to follow the sponsors here.”
You can see this session of ILS Asia 2021 on-demand here.
As well as the on-demand playback, we will be archiving every session from our online and virtual ILS Asia 2021 conference over on our YouTube Channel in the coming weeks and audio versions will also be uploaded to our podcast which you can subscribe to here.
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