Joseph Chan touts Hong Kong as top ILS issuance centre

The insurance authority hosted its first ILS conference last week.

Hong Kong’s Insurance Authority pegs the market as an “ideal platform for  Insurance-linked Securities (ILS) issuance”.

The government agency hosted the inaugural ILS Conference on 12 April, aimed at institutional investors and professional service providers. 

Joseph Chan, acting secretary for Financial Services and the Treasury, highlighted Hong Kong's robust insurance and reinsurance sector as a foundation for developing the ILS ecosystem. He emphasised Hong Kong's connectivity with Mainland China and the global market, positioning it as an ideal platform for ILS issuance.

“We are striving to have more ILS issuances in Hong Kong, thereby further consolidating Hong Kong’s advantage as an international insurance hub,” Chan said at the conference.

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Stephen Yiu, chairman of the IA, emphasised the significant consequences of climate change and financial volatilities. He underscored the attractiveness of ILS as an asset class from both yield and diversification perspectives in such an environment.

Jorge Familiar, vice president and treasurer of the World Bank, discussed how catastrophe bonds can help developing countries mitigate the economic impacts of natural disasters. He emphasized the importance of collaboration and innovation in the ILS market to build resilience for vulnerable nations.

The conference attracted over 100 participants and speakers from Hong Kong, Mainland China, Asia Pacific, the United Kingdom, and the United States. It featured discussions on the value proposition of the ILS market in Hong Kong, the ILS investment landscape, and a live catastrophe bond transaction roadshow.