Macro-financial risk
2026-04-26
11 min
12 sources
Catastrophe Bonds and ILS in 2026: The Quietly Maturing Climate Capital Market
Outstanding cat bond capital reached USD 47B at end 2024, up from USD 31B in 2022, after a record USD 17.7B issuance year that survived hurricanes Beryl, Helene, and Milton without a single principal impairment.
The catastrophe bond and broader insurance-linked securities (ILS) market entered 2026 as the most credible climate-capital instrument the reinsurance industry has produced. Outstanding 144A cat bond capital reached USD 47B at end 2024 (Artemis Deal Directory), a 52 percent expansion in 24 months from the USD 31B end 2022 mark. Aon Securi...