Insurance Authority hosts Insurance-linked Securities Conference to promote Hong Kong as an emerging ILS domicile

The Insurance Authority (IA) hosted the Insurance-linked Securities (ILS) Conference today (12 April 2024), the first event of its kind tailored specifically for institutional investors and related professional service providers.

Mr Stephen Yiu, Chairman of the IA, highlighted in his welcoming speech the grave consequences associated with climate change, pointing out that “Climate change and financial volatilities have sharpened the focus on ILS as an attractive asset class from both the yield and diversification perspectives.” He encouraged participants of the Conference “to take full advantage of the friendly and efficient environment for ILS issuance forged in Hong Kong.”

In his opening remarks, Mr Joseph Chan, Acting Secretary for Financial Services and the Treasury, said, “Hong Kong is home to an array of insurers and reinsurers with rich experience and expertise, providing a solid bedrock for our ILS ecosystem to develop. Combined with our connectivity with the Mainland and the rest of world, Hong Kong is an ideal platform for ILS issuance.” He added, “We are striving to have more ILS issuances in Hong Kong, thereby further consolidating Hong Kong’s advantage as an international insurance hub.”

Mr Jorge Familiar, Vice President and Treasurer of the World Bank, shared his view in the keynote address on how developing countries can mitigate disruptive economic impacts brought by natural disasters through catastrophe bonds. He commented that “We look forward to continued collaboration and innovation in the ILS market. Together, we can build a more resilient future for vulnerable nations around the world.”

The Conference attracted over 100 participants and speakers from Hong Kong, Mainland China and the rest of Asia Pacific region, the United Kingdom and the United States. It featured a fireside chat, two expert panels on value proposition of the ILS market in Hong Kong and the ILS investment landscape respectively, and a live catastrophe bond transaction roadshow for eligible ILS investors.

Mr Stephen Yiu, Chairman of the IA, delivers welcome speech at the ILS Conference.