Insurance Authority welcomes World Bank’s second issuance and listing of catastrophe bond in Hong Kong

The Insurance Authority (IA) expressed its satisfaction with the recent issuance and listing of a catastrophe bond worth US$150 million in Hong Kong. The bond, facilitated by the International Bank for Reconstruction and Development of the World Bank Group, aims to provide protection against storm risks in Jamaica for the next four hurricane seasons. Mr Clement Cheung, Chief Executive Officer of the IA, emphasized the importance of supporting economies in mitigating the risks associated with natural disasters. He stated that the issuance of insurance-linked securities (ILS) demonstrates Hong Kong’s commitment to addressing the devastating impact of tropical cyclones. Moving forward, the IA aims to foster an ecosystem that encourages institutional investors, enhances data modelling capabilities, and nurtures professional talent. The World Bank’s Vice President and Treasurer, Mr Jorge Familiar, expressed his satisfaction with the collaboration between the World Bank and the IA in supporting the Government of Jamaica’s financial preparedness for future hurricane events. He highlighted the catastrophe bond as an effective means for developing countries to mitigate the disruptive economic consequences of natural disasters. The partnership between the IA and the World Bank in this transaction strengthens the ILS market and showcases the potential of such bonds in safeguarding economies. Since the introduction of the regulatory regime and pilot grant scheme in 2021, Hong Kong has witnessed five ILS issuances, amounting to a total sum of US$713 million, indicating the growing significance of these initiatives in the region. Resources: https://www.ia.org.hk/en/infocenter/press_releases/20240506.html