Reported about 1 year ago
Sales of catastrophe bonds have surged to a record high, signaling concerns over a potentially severe hurricane season which could lead to significant losses. Issuance in May alone hit an all-time high of $4 billion, reshaping a market that saw a 20% increase in 2023. Investors are now more cautious, looking to limit exposure due to forecasts of an active hurricane season, with experts emphasizing the need for greater scrutiny. Despite growing risks, insurers are increasingly turning to capital markets for risk coverage, with notable issuances from various entities like Citizens Property Insurance Corp. and the World Bank. However, uncertainties tied to climate change make investing in cat bonds a more unpredictable venture for investors.
Source: YAHOO