Full Capacity: Hong Kong’s regional ambitions and the PCC bet

September 26 2026 by

Welcome to Full Capacity, a weekly briefing on all the most important developments of the past week with a personal take on the news from our editor-in-chief, Mithun Varkey, delivered to your inbox every Saturday.    

Mixed fortunes. IAG has clinched a settlement with Credit Suisse in the multi-billion-dollar legal saga sparked by Greensill Capital’s spectacular collapse.  

The insurer said the payout is not expected to leave a “material” dent in its financial position. That follows an earlier settlement in May with Greensill Bank and its administrators.  

IAG continues to be a defendant in proceedings brought by White Oak and other parties, according to the statement on Friday. The remaining aggregate value of these claims is US$120 million. 

In a separate setback, IAG’s bid to acquire RAC Insurance – the insurance arm of Western Australia’s motoring club – hit a wall after the Australian Competition and Consumer Commission slammed the brakes on the deal over antitrust concerns. IAG said it will file a public benefits application, urging the regulator to weigh whether the acquisition’s upside for the public outweighs the downside. 

Nat cat update. Claims from Typhoon Dujuan are expected to be like those from the Chiba floods earlier this year, for which insurers paid out US$225 million from 30,000 of the 32,000 claims. 

Typhoon Dujuan brought record-breaking rainfall to the eastern parts of Japan, triggering landslides, flooding and widespread transport disruptions. Ten people have been confirmed dead, and at least four were missing as of Thursday afternoon. 

Shifting liabilities. APAC’s decommissioning insurance market is shifting from a backwater to a growth market as thousands of offshore oil and gas structures near end-of-life.  

The sector has been thrust into the spotlight over who will foot the bill for the Cliff Head oil platform near Perth in Australia after the two companies that were working on repurposing the abandoned oil drilling rig went bankrupt leaving the public exchequer facing the cost of decommissioning.  

Asia, meanwhile, operates over 2,000 offshore structures, many built between the 1970s and 1990s and would need managed capital deployment and regulatory engagement as well as insurance solutions to cover the coverage gap. 

Grand designs

Hong Kong’s first five-year plan places insurance and the city’s ambition to become a global risk management hub at its centre. 

The highlight of the plan is a proposal to explore a protected cell company (PCC) regime that could reduce the cost and complexity of establishing captives and issuing insurance-linked securities (ILS). 

It is a sensible response to Singapore’s consultation in July on its own PCC framework, which is targeted for implementation by 2028 and explicitly covers captives, including rent-a-captive models, ILS and sovereign risk pools. 

PCCs matter because they allow multiple ring-fenced “cells” to operate within a single legal entity. 

For ILS sponsors and captive owners, that can mean faster, cheaper structures than repeatedly setting up standalone special-purpose vehicles. 

PCCs are also key to attracting sidecars and private ILS vehicles, which are firmly in Hong Kong’s plans. 

Although Asia remains behind the curve on private ILS and sidecars, entrepreneurial insurers and reinsurers across the region have an appetite to experiment. 

Hong Kong’s PCC proposal is therefore timely. 

Beyond PCCs, Hong Kong has signalled that it will continue to promote ILS, narrow the catastrophe protection gap and review investor restrictions to “invigorate” the ILS fund trading market.

These measures could unlock more local and regional capital for cat bonds and collateralised reinsurance. 

That is critical if Hong Kong wants ILS to become more than a regulatory showcase and develop into a genuine liquidity pool for catastrophe risk in the region. 

Hong Kong is also building on its traditional strengths in trade and logistics by expanding insurance coverage for commodities and investing in marine insurance. 

Under the five-year plan, the government and the Insurance Authority will “suitably increase” underwriting appetite for gold storage, commodity trading and green-fuel bunkering. The marine risk pool’s underwriting capacity is also slated to expand. 

Together, these measures signal an ambition to carve out niches in which the city can credibly compete. 

Singapore currently holds pole position: its PCC consultation is further advanced, with a clear 2028 target and detailed proposals on tax, governance and insolvency treatment. Even so, Hong Kong has genuine advantages, including its proximity to mainland China, deep industry connections and strong talent pool. 

Risk managers and insurers should welcome the competition. 

A Hong Kong alternative would give sponsors more choice, potentially lower costs and encourage innovation across the region. 

For now, however, Hong Kong’s insurance push still reads as necessary catch-up. The infrastructure is being laid – the test now is execution. 

People moves

QBE has appointed Jonathan Groves as its CEO for the Australia-Pacific region, replacing Sue Houghton. 

Canopius has strengthened its regional bench with the appointments of Louise Wai as APAC head of property, D&F, Jack Hullah as APAC head of credit and political risk and Richard Adamczyk as senior claims manager for Australia and New Zealand. 

Lockton also tapped WTW’s Alex Bursak as its regional director of credit for Asia. 

Do check out our weekly people move round-up to stay up to speed on the most important appointments in the region. 

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