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Reinsurance / Specialty > Insurance-linked Securities

Insurance-linked Securities (“ILS”)

Insurance-linked securities (“ILS”) are risk management tools allowing insurers and reinsurers to seek alternative capital by offloading insured risks to the capital markets through securitization.  As a global risk management center with a competitive insurance industry and an international financial center with vibrant capital markets, Hong Kong aims to forge an ILS ecosystem that offers alternative risk transfer solutions to narrow protection gaps. The Central Government also supports Chinese Mainland insurers to issue catastrophe bonds and sidecars in Hong Kong to manage natural catastrophe risks.


Bespoke Regime for Special Purpose Insurers

The Insurance Authority implements a bespoke and streamlined authorization and regulatory regime for Special Purpose Insurers (“SPI”) formed specifically for issuing ILS in Hong Kong.

Prospective applicants for authorization of SPIs are suggested to refer to the Guideline on Application for Authorization to Carry on Special Purpose Business ("GL33").


Pilot ILS Grant Scheme

To incentivize ILS issuance and nourish more relevant services and operations in Hong Kong, the Government launched a Pilot ILS Grant Scheme.  It was announced in the 2025-26 Budget that the Scheme will be extended for three years until 2028.

The Scheme is open to onshore and offshore sponsors issuing ILS in Hong Kong, covering risks of any type and location.  An eligible issuance is required to have at least 40% of upfront costs attributable to the revenue of Hong Kong-based service providers.

The scheme subsidizes 50% to 100% of upfront costs of an eligible ILS issuance up to:

  • HK$ 7 million for a new issuance; or
  • HK$ 3 million for a renewal or repeated issuance.

Interested parties may write to [email protected] for details about the Pilot ILS Grant Scheme and information relevant to ILS in Hong Kong.


ILS Conference

The Insurance Authority hosts annual ILS Conference to facilitate exchanges on the latest developments in ILS issuance and on ILS itself as an asset class for investment. Each year the Conference attracted over 100 institutional investors and professional service providers to exchange insights and forge partnerships.

ILS Conference 2026 – Event Highlights

Visit our YouTube channel to watch recordings of the opening remarks, panel discussions, closing remarks, and event highlights.


ILS Conference 2025 – Event Highlights

Visit our YouTube channel to watch recordings of the opening remarks, panel discussions, and event highlights.




May 2026