Tokenized catastrophe bonds target the disaster-insurance gap

From the source

A planned Bermuda issuance would put legal ownership onchain and seek capital for disaster risks that remain costly to insure. Natural disasters caused $220 billion in economic losses last year. Insurance covered only $107 billion of that bill, according to Swiss Re, leaving households, businesses and governments to absorb the rest. Capital has continued to flow into catastrophe bonds. Catastrophe bonds, or cat bonds, let insurers pass the financial risk of a hurricane, wildfire or earthquake to capital-market investors. The market had $65.6 billion outstanding in June and new issuance reached $11.3 billion in the second quarter, the largest quarterly total on record, according to Artemis’ recent cat bond report . Yet large parts of the loss from floods, typhoons and wildfires remain uninsured. In the Asia-Pacific, 91% of disaster losses in 2023 were uninsured, according to the Organization for Economic Co-operation and Development (OECD) . It also said limited claims data and…

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