Chen Maobo: Hong Kong is expanding the coverage of insurance-linked securities and studying the introduction of a “protected unit company” structure
The Zhitong Finance App learned that Hong Kong's Financial Secretary Chen Maobo said in his speech at the 2026 Asian Insurance Forum that Hong Kong will strengthen the regulatory and capital base of the insurance industry, expand the securities market linked to shipping, emerging industries and insurance, and enhance the competitiveness of international risk management centers. The authorities are studying legislation to introduce a “protected unit company” structure to allow multiple transactions to be carried out within the same company, while legally separating the respective assets and liabilities, simplifying related arrangements and reducing set-up costs.
He added that Hong Kong's gross premiums reached HK$827 billion last year, an increase of 30%; premiums increased by more than 35% in the first half of this year. The Hong Kong Government has also lowered the capital requirements for insurance companies to invest in eligible infrastructure projects in Hong Kong and the Mainland. The relevant arrangement will come into effect by the end of this year, freeing up the ability to invest more insurance funds, supporting infrastructure projects, including the Northern Metropolitan Area, while maintaining protection for policyholders.
Chen Maobo pointed out that geopolitical tension is reshaping supply chains and trade routes, climate disasters threaten homes, businesses and infrastructure, and cyber threats and artificial intelligence are simultaneously changing the risks covered by the insurance industry and the way they operate. Insurance gives individuals, families and businesses the confidence to move forward in an uncertain environment. The industry itself must also enhance its resilience, enhance its capabilities, and open up new fields to help manage risk in emerging industries and the overall economy.
He said that insurance-linked securities can attract capital market investors who are willing to take specific insurance risks. Hong Kong has so far issued 8 insurance-linked securities, 7 of which are catastrophe bonds; the latest one issued last month was Hong Kong's first “side trailer”, allowing investors to share the risks and rewards of the mainland's offshore wind farm insurance business.
He pointed out that the Hong Kong Government is studying legislation to introduce a “protected unit company” structure to allow multiple transactions to share a single company and at the same time legally separate their assets and liabilities to simplify related arrangements and reduce establishment costs. Hurricane “Melissa” hit Jamaica in October of last year, triggering full repayment of the bond. The funds helped the local government repair the power grid and restore electricity supply to homes and businesses sooner. Chen Maobo said that this reflects the human value of financial instruments: a bond listed in Hong Kong can help a community on the other side of the world to re-light its light.