HKIA welcomes World Bank’s second Cat bond, worth $150m
It will offer coverage against storm risks in Jamaica.
The Hong Kong Insurance Authority (HKIIA) welcomed the issuance and listing of a $150m catastrophe bond (~HK$1.17b) in Hong Kong by the International Bank for Reconstruction and Development of the World Bank Group.
This bond offers protection against storm risks in Jamaica over the next four hurricane seasons.
“The citizens in Hong Kong are no stranger to the devasting impact of tropical cyclones. This issuance of insurance-linked securities (ILS) shows clearly that we care for and are willing to support economies in mitigating the risks arising from natural disasters,” said Clement Cheung, Chief Executive Officer of the HKIA.
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“Going forward, we will dedicate efforts to forging an ecosystem that nourishes institutional investors, data modelling capabilities and professional talents.” Cheung added.
Jorge Familiar, VP and Treasurer of the World Bank, said the catastrophe bond demonstrates how developing countries can mitigate economic impacts from natural disasters.
Since the introduction of the regulatory regime and grant scheme in 2021, Hong Kong has witnessed five ILS issuances totalling $713m (about HK$5.59b).