china

The Chinese government via its regulator has urged its insurance and reinsurance industry to focus on developing new products for disaster risk transfer and to help in covering more of the natural catastrophe risk in the country, given the current evident protection gap that exists.

The recent severe flooding in China’s Henan province is expected to result in the largest catastrophe insured losses in history for the country, clearly demonstrating the need for more reinsurance protection, as well as faster roll-out of primary covers.

The recent severe flooding in China’s Henan province is expected to suppress underwriting margins for the China non-life insurance and reinsurance industry in 2021, with total industry losses expected to exceed US $1.25 billion, according to Fitch Ratings.

China’s province of Henan has been hit by what is being termed a 1-in-1000 year flood event, after a year’s worth of rainfall fell in just three days. But the insurance and reinsurance market claims impact may be most severe on the auto side, rather than property claims, while supply-chain disruption could also be a […]

With Hong Kong now established as a regulated domicile for insurance-linked securities (ILS) and catastrophe bonds, there could be several issuances out of the region by the end of 2021, according to Cory Anger, Managing Director of GC Securities.

Recognising the need for industries to be able to hedge their weather risks using robust data and indices, alongside exchange listing and trading, the National Meteorological Information Center of China and the Zhengzhou Commodity Exchange will work together to develop derivatives products such as weather index futures.

We’ve learned that the first company destined to be an insurance-linked securities (ILS) special purpose vehicle has already been registered in Hong Kong, with Greater Bay Re Limited established to issue a catastrophe bond on behalf of China Re, sources told us.

China is set to significantly expand the roll-out of an agricultural disaster insurance scheme that has been in pilot mode since 2017, as it has found the results positive in helping small and mid-sized farmers protect their incomes and recover more rapidly from weather and natural catastrophes.

Munich Re has promoted Steven Chang to the role of Chief Executive, Greater China, which will see him lead the reinsurance giant’s non-life business and operations across mainland China, Taiwan, Hong Kong and Macau.

Rapidly expanding insured catastrophe and severe weather exposure in mainland China highlights the need for risk transfer instruments such as catastrophe bonds, which also presents an opportunity for Hong Kong’s ambitions to become a marketplace for insurance-linked securities (ILS).