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Insurance regulator in talks to create ILS market in China

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London-based Willis Group Holdings P.L.C. said that the China Insurance Regulatory Commission has started discussions on forming an insurance linked securities market, chiefly focusing on catastrophe bonds, Asia Insurance Review reports.

Willis said that the first application of the China ILS market will be to use catastrophe bonds to offset risk exposures at large state-owned Chinese insurers.

The second application could follow the CIRC's push for greater use of captive insurers in the country, Willis said.

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