The Harsh Reality of Catastrophe Bonds

Early estimates put the damage from Hurricane Milton in the tens of billions of dollars. It’s the latest example of how climate change is making large parts of the planet too expensive to protect. Bloomberg Green has been investigating that risk in this year’s “Uncovered” series.

Today’s story is about catastrophe bonds, a clever-sounding insurance solution that’s being pitched to developing countries. Yet the instrument can leave the most vulnerable nations out of luck when disaster strikes.

Click these links to read more “Uncovered” stories. Part 1 looked at the fragility of US “last resort” insurance programs. Part 2 explored the risky business of private climate modeling. For more on how global warming is impacting insurance markets, please subscribe.