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.
Investor appetite is surging in the asset class, which is emerging as a potential pressure valve for strained reinsurance markets
Third-quarter results show a rebound that outpaced market recovery
Capital allocation and structural changes sit behind a 25% surge
High US insurance penetration masks persistent underinsurance elsewhere
Why Swiss Re Corporate Solutions CEO views structural shifts reshaping underwriting and risk management
