As institutional investors across Asia Pacific scour the globe for yield and diversification, insurance-linked securities are moving into the mainstream, offering returns that are uncorrelated with the whims of the stock market.
Hong Kong is positioning itself as a market leader for insurance-linked securities (ILS), leveraging its financial infrastructure, regulatory support and connectivity to Mainland China.
Taiping Reinsurance's issuance of Asia's first dual-perils, dual-triggers catastrophe bond represents not just a milestone transaction, but signals the dawn of a more sophisticated approach to disaster risk transfer in the region.