A catastrophe waiting to happen?

As climate change and geopolitical uncertainty ratchet up the risk of a single, catastrophic event, insurers are turning to catastrophe bonds to offset that risk. Richard Bravo reports

By the end of September, Congress was contemplating additional funding—a possible $12.2 billion—to help the southeastern states recover from a severe start to the hurricane season. Hurricanes Charley, Frances, Ivan and Jeanne wrought an untold amount of destruction on Florida, initiating the largest recovery effort ever by the Federal Emergency Management Agency.

The intensity of the weather pattern was something of an anomaly, this being the first time four hurricanes have hit the same state