In the recent 2024-25 Budget speech, Hong Kong’s Financial Secretary, Paul Chan Mo-po, highlighted plans to promote Hong Kong as a platform for the issuance of insurance-linked securities (ILS).
He stated, “We are also promoting the development of insurance‑linked securities (ILS) by establishing a dedicated regulatory regime and launching a pilot grant scheme.”
So far, Hong Kong has successfully facilitated the issuance of four catastrophe bonds, one of which was the first of its kind to be listed as an ILS.
Chan expressed his intention to attract more issuers to Hong Kong, while also focusing on nurturing talent and advancing the industry’s progress.
Stephen Yiu, Chairman of the Insurance Authority (IA), welcomed the Budget measures, stating, “the IA will sustain efforts to promote Hong Kong as a platform for issuance of ILS and a conduit for international investors to gain access to the Mainland market.”
In addition to promoting Hong Kong as an ILS hub, the government plans to attract overseas companies to relocate to Hong Kong and establish captive insurers for enhanced risk management. Moreover, funding will support green finance and sustainable practices, alongside initiatives to strengthen the financial services sector.
The Hong Kong Federation of Insurers (HKFI) also welcomed measures outlined by the Financial Secretary.
“Looking ahead, the HKFI is fully committed to continuously collaborating with the Government to bring these objectives to fruition, further enhancing Hong Kong’s position as the International Financial Centre and Risk Management Hub,” said the HKFI.
