b'TABLE OF CONTENTSor 100% of the total upfront costs incurred for ILSThe ability to access markets in Hong Kong for risk with maturity that is three or more years, and thetransfer is important as China faces risk of severe lesser of HK$6 million or 50% of the total upfrontweather exposure, as well as natural disasters costs incurred for ILS with maturity that is up toincluding earthquakes and flooding, which is three years. This publication shortly followed Hongcompounded by climate change. Kongs amendment on its ILS rules of reducing theIn December 2021, Mrs. Carrie Lam, the Chief minimum investment sized required in an issuanceExecutive of Hong Kong, echoed the importance of down from US$1 million to US$250,000. Bothdisaster risk capital to underpin risks in the GBA onshore and offshore sponsors of ILS will beduring her opening speech at the Asian Insurance eligible for the ILS Grant Scheme, as long as theForum 2021. She highlighted that most issuance takes place in Hong Kong. Insurance andinstruments currently on offer are underpinned by reinsurance company sponsors can also originatecatastrophic risks in North American and the from supranational and multinational organizations. Oceanic region, enormous potential exists with the Hong Kongs first domiciled catastrophe bond,GBA. She explained the issuance of the first China Re (Hong Kong) Limiteds (China Re) US$30catastrophe bond from Hong Kong transferred risks million Greater Bay Re Ltd. (Series 2021-1) typhoonfrom the GBA region to international catastrophe catastrophe bond, was privately placed to a smallbond investors. As cooperation within the industry group of investors in September 2021. It showedcontinues, Mrs. Lam foresees an opportunity to the reinsurer responding to the demands of majorattract talent and a chance to fuel a sustainable Chinese urban centers and utilizing Hong Kong as amarket growth. Similarly, sponsors continued to new channel for risk diversification of the domesticutilize the relatively new Singapore ILS regime, with catastrophe insurance market. Mr. Hu Xiao, Vicea total of nine Singapore-domiciled transactions Chairman and CFO of China Re (Hong Kong)undertaken in 2021, an increase over the six Limited (Chinwa Re), explained this was ancompleted in 2020.important first step in recognizing synergies between China and Hong Kongs financial markets. MAYER BROWN |57'