U.S. property insurers are increasingly managing climate risk with the help of an unusual partner: investors.
The global market for catastrophe bonds — financial tools that let investors bet on the chance of a natural disaster — reached a record $61.3 billion in 2025, according to Artemis, a website that tracks insurance sector financing.
The figure represents a near-doubling of the cat bond market since 2020, according to Artemis data. The “huge” growth in 2025 skewed heavily toward North America, where U.S. insurers are seeking new ways beyond traditional reinsurance to protect against catastrophic losses from devastating natural disasters, Artemis said.
One sign that catastrophe bonds are going mainstream: They’re being adopted by smaller insurers that prefer more established tools to manage risk.
