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Insurers turn to cat bonds as means of managing soaring wildfire risk

Insurers are turning to catastrophe bonds to pass on historic levels of wildfire risk to the capital markets. Issuance of cat bonds that include exposure to wildfires has already soared to more than $5 billion so far this year, according to data published on Monday by industry specialist Artemis. That’s approaching the record amount sold during all of 2025, which was roughly double the level issued the previous year. [...]