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Catastrophe bonds skew further toward indemnity and per-occurrence triggers

In 2026 so far, about 78.0% of cat bond limit issued in Artemis’ tracked data uses an indemnity trigger, the highest in the market’s history.

Reported · Written up by our desk · Reinsurance

The catastrophe bond market has continued shifting its risk-transfer structures toward indemnity triggers and per-occurrence coverage, reflecting rising preference from both sponsors and investors, according to Artemis data.

Artemis reports that nearly 78.0% of catastrophe bond limit issued and tracked in 2026 so far features an indemnity trigger, topping prior years. The share was 67.5% for 2022 issuance, 72.5% for 2023, 73.0% for 2024, and 75.6% for 2025.

Artemis links the trend to sponsor mix, citing steady growth in new market entrants and first-time catastrophe bond sponsors, including primary insurers. The database shows 14 first-time sponsors issued cat bonds so far in 2026, with the year positioned to beat the 15 new sponsors recorded for full-year 2025.

Artemis adds that the structure shift also ties to how primary insurers use cat bonds within their broader reinsurance arrangements, and it points to a growing appetite for per-occurrence coverage on the investor side as well. It also references recent Florida reinsurance dynamics, including the down-sizing of Citizens, as part of the broader migration of risk away from residual markets toward private insurers.

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