Tokenization · Artemis Program · CoinDesk
Tokenized catastrophe bonds target the disaster-insurance gap
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
★ Tier-1 Source
Natural disasters caused $220 billion in economic losses last year.
Key facts
- The World Bank arranged $200 million of hurricane coverage for Jamaica in May, replacing an earlier transaction that paid out after Hurricane Melissa in 2025
- Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%
- The market had $65.6 billion outstanding in June and new issuance reached $11.3 billion in the second quarter, the largest quarterly total on record, according to Artemis’ recent cat bond report
- In the Asia-Pacific, 91% of disaster losses in 2023 were uninsured, according to the Organization for Economic Co-operation and Development (OECD)
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. Capital has continued to flow into catastrophe bonds. Yet large parts of the loss from floods, typhoons and wildfires remain uninsured.