The North Carolina Insurance Underwriting Association (NCIUA) has become the first catastrophe bond sponsor to benefit from an issuance that has disaster-resilience features integrated in it, with its recent $600 million Cape Lookout Re Ltd. (Series 2025-1) the very first cat bond to include an additional resilience feature.
As a result, this recent cat bond deal has become the first and only example of an insurance-linked securities (ILS) deal that also classifies as a true resilience bond, which we see as breaking new ground in the catastrophe bond and ILS market.
For years now we’ve been covering and analysing various projects that have looked to create a resilience bond structure, which has been proposed as a hybrid between a cat bond and resilient infrastructure bond.
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