Catastrophe bond sales hit $18.2 billion in 2025, surpassing the previous record, amid rising climate risks.

In 2025, sales of catastrophe bonds (CAT bonds) reached a record high of $18.2 billion, surpassing the previous record in 2024. These financial instruments allow insurers to transfer the risk of losses from natural disasters to investors, offering high returns. Rising interest in these bonds is being fueled by the intensifying climate crisis, with insured losses totaling $80 billion in the first half of 2025, most of it from the United States.