asia

While the Hong Kong regulator’s insurance-linked securities (ILS) grant scheme is expected to attract sponsors to the region, the new regime must show its competitiveness against existing and established ILS domiciles, say industry experts.

The impact and subsequent loss creep from typhoon Jebi in Japan in 2018 caught many insurance-linked securities (ILS) investors by surprise, but the eventual deviation from initial vendor model loss estimates doesn’t translate to a fundamental issue with the models themselves, say industry experts.

Knowledge and understanding of the insurance-linked securities (ILS) asset class is on the rise in Asia, and while local expertise is a real benefit, it’s also vitally important to communicate early and persistently with the investor base, according to industry experts.

Highlighted by the efforts of Singapore and more recently Hong Kong, there’s an exciting and growing opportunity for the insurance-linked securities (ILS) sector to play a meaningful role in the Asia region, according to industry experts.

Insurance-linked securities (ILS) and catastrophe bond limits at risk of losses in the Asia Pacific region continue to expand, according to reinsurance broker Guy Carpenter, which results in increasing global diversification opportunities for the ILS investor base.

Asia’s reinsurance markets have the potential and scope for strong growth as risk-awareness and demand for reinsurance coverage spikes in the region, coupled with a significant protection gap and the region’s high exposure to losses from natural catastrophes, according to Fitch Ratings.

Cities in the Asia-Pacific region will become the dominant source of global insured windstorm exposure by the year 2070, as rising asset values, growing insurance and reinsurance penetration and rising populations in tropical storm hot spots change the risk landscape.

Countries across Asia continue to develop, or pursue the development of, functioning catastrophe insurance and reinsurance markets, which is a positive sign for global reinsurers and the insurance-linked securities (ILS) market.

One of the world’s leading catastrophe risk modelling firm’s, RMS, has announced the release of a new Economic Exposure Database and Industrial Clusters Catalogs for the Philippines, South Korea, Taiwan, Thailand and Vietnam.

A recent report has stressed the impact that climate change and an expected increase in severity and frequency of natural disasters will have on Asia, claiming it could slash almost 9% off the South Asian economy each year.