支持境内险企赴港发行“侧挂车” 保险业迎战巨灾风险添新工具

Core Viewpoint - The Chinese insurance industry is accelerating the exploration of new paths for risk diversification in the context of increasing global climate change and frequent natural disasters, with the recent issuance of a notification supporting domestic insurance companies to issue "sidecar" insurance-linked securities in the Hong Kong market [1][4]. Group 1: Background and Context - Extreme weather and natural disasters have been on the rise, with significant losses reported both domestically and internationally. In 2024, natural disasters in China affected approximately 94.13 million people, resulting in direct economic losses of 401.11 billion yuan [3]. - The insurance payout for natural disasters in China is significantly lower than the global average, with only about 10% of losses covered by the insurance industry compared to the global average of around 40% [3][4]. Group 2: Regulatory Developments - The notification issued by the National Financial Regulatory Administration aims to implement the State Council's opinions on enhancing regulation and preventing risks while promoting high-quality development in the insurance industry, specifically focusing on exploring catastrophe bonds [4][5]. - The "sidecar" insurance-linked securities concept is defined, and the management requirements for special purpose insurance companies (SPI) are established, which will help in transferring catastrophe risks to the capital market [5][6]. Group 3: Risk Management Tools - The introduction of "sidecar" insurance-linked securities is expected to enrich the catastrophe risk management toolbox and create a multi-layered network for risk diversification [4][8]. - These securities allow insurance companies to transfer risks associated with natural disasters to specially established SPIs, which will issue equity or debt securities to raise funds for claims [5][6]. Group 4: Market Implications - The "sidecar" insurance-linked securities are anticipated to provide additional protection for insurance companies by allowing them to access the Hong Kong capital market, thus supplementing traditional reinsurance markets [8][9]. - This new financial product is expected to offer a low correlation with traditional financial assets, making it an attractive investment option in the Hong Kong market [9].