The rise of catastrophe bonds is changing the insurance landscape. Once used as a last resort, these bonds are becoming more popular among primary insurers, who now sponsor 58% of all cat bonds, up from 48% two years ago. This shift may be putting reinsurers on the backfoot, as they struggle to adapt to a market where their traditional role is being challenged.
Source: https://www.bloomberg.com/news/articles/2025-10-21/catastrophe-bonds-huge-market-gains-put-reinsurers-on-backfoot