Tokenized catastrophe bonds target the disaster-insurance gap
A planned Bermuda issuance would put legal ownership onchain and seek capital for disaster risks that remain costly to insure.
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Summary
- Natural disasters caused $220 billion in economic losses last year, but insurance covered only $107 billion, leaving households, businesses and governments to bear the rest.
- The catastrophe-bond market reached $65.6 billion in June, as insurers increasingly transferred disaster risks to investors despite persistent coverage gaps, particularly in the Asia-Pacific region.
- Harneys and dropRWA plan to issue tokenized catastrophe bonds in early 2027, potentially widening investor access through smaller ownership units while remaining subject to securities, insurance and investor-protection rules.
