Catastrophe bond investors are betting on disasters
CBS America · New
CBS America
New
Insured property losses have soared, pushing insurers into hiking rates or even pulling out. So-called catastrophe bonds are emerging as a way to bring more capital into the market.
Breakdown
- Homeowners on Oak Island are using catastrophe bonds to fund resilient roofs. 29s
- Insured property losses have risen from $30 billion to over $110 billion in recent years. 43s
- Catastrophe bonds provide capital to insurance markets and shift some disaster risk to investors. 53s
- If a disaster meets certain criteria, bondholders absorb the loss instead of insurers. 1m 4s
- Catastrophe bonds are helping communities invest in disaster resilience as insurance becomes harder to obtain. 1m 53s