Summary

The catastrophe bond market saw record-breaking growth in 2025, with issuance reaching $25.6 billion, driven by new sponsors and an expansion of risk. This growth is expected to continue in 2026, with a projected issuance of around $20 billion, fueled by investor interest in the asset class’s low volatility and diversification benefits. However, analysts warn of rising capital pressure as investors reinvest returns back into the market.

https://www.cnbc.com/2026/02/02/catastrophe-bonds-insurance-climate-change-markets.html