A catastrophe bond (cat bond) is a type of insurance‑linked security that transfers specified catastrophe risks—such as hurricanes, earthquakes, or pandemics—from insurers or reinsurers to capital market investors. If a defined trigger is met, the principal is used to cover losses, providing sponsors with multi‑year protection and investors with uncorrelated return potential. Cat bonds have become a critical component of alternative risk transfer, enabling balance‑sheet relief, diversification of reinsurance capacity, and pricing signals for peak‑peril exposures.
25 years ago a bolt from the blue hit the world, and the insurance industry suffered a seismic upheaval
Reinsurer warns that a $320 billion peak-loss scenario remains on the table
The ABI wants insurance built into Whitehall's infrastructure planning, arguing that earlier involvement could improve insurability and unlock capacity for major projects
Property catastrophe pricing keeps falling into 2027 renewals, but reinsurers are holding firm on attachment points and terms
Record ILS capital and the steepest reinsurance pricing decline in a decade are not contradictory. They are symptoms of the same abundant-capital environment - and the question for the January 2027 renewal is how long that environment holds
