金融监管总局：支持境内险企在香港发行“侧挂车”保险连接证券

Core Viewpoint - The Financial Regulatory Administration has issued a notice supporting domestic insurance companies to issue "sidecar" insurance-linked securities in the Hong Kong market, aimed at enhancing catastrophe risk management tools and diversifying risk [1][4]. Group 1: Definition and Structure - "Sidecar" insurance-linked securities involve insurance companies transferring catastrophe risks from natural disasters or public health events to specially established special purpose insurance companies, which then issue equity or debt securities to raise funds for fulfilling compensation obligations [3]. - The establishment and management of these special purpose insurance companies must comply with specific requirements, including bankruptcy isolation and asset custody by qualified financial institutions [3]. Group 2: Regulatory Framework and Requirements - The notice outlines that the reinsurance receivables and reserves from the issuance of "sidecar" insurance-linked securities must adhere to solvency regulatory requirements [3]. - Special purpose insurance companies must ensure full cash collateral or equivalent protection mechanisms for the maximum liability to the transferring insurance companies throughout the duration of the reinsurance contracts [3]. Group 3: Benefits and Market Impact - The introduction of "sidecar" insurance-linked securities is expected to enhance China's catastrophe risk protection system by providing additional coverage beyond traditional reinsurance, thus expanding risk diversification channels [4]. - This mechanism is anticipated to improve the financial stability of insurance companies by allowing them to share catastrophe risks with the capital market, thereby smoothing operational volatility [4]. - The new securities will offer Hong Kong investors a novel investment product with low correlation to traditional financial assets, as their triggers are typically linked to natural disasters rather than economic cycles [4]. Group 4: Future Actions - The Financial Regulatory Administration plans to monitor the implementation of the notice and support willing insurance companies in issuing "sidecar" insurance-linked securities to enhance catastrophe risk management capabilities [5].