Catastrophe bonds continue to gain momentum as investors are seeking for diversification in increasingly volatile equity and bond markets. The launch of the first catastrophe bond ETF’s further demonstrated the growing investor interest in insurance‑linked strategies.

Michael notes that insurance‑linked strategies remain insulated from geopolitical risks and offer attractively priced protection for insurers, supporting the management of extreme-event risk management and regulatory capital needs. With no direct exposure to war risk, interest rates, credit spreads or oil prices, the asset class maintains a low correlation profile.

Despite spread compression driven by strong inflows and record issuance, catastrophe bonds continue to stand out as a diversifier for investors.

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