The catastrophe bond market continues to demonstrate increased comfort with the wildfire peril in 2026, with the amount of risk capital deployed to support cat bonds that have some exposure to wildfire having soared to $5.183 billion year-to-date, already nearing the full-year record of $5.55 billion for the peril seen in 2025.
Since 2022, the catastrophe bond market began to see an acceleration in the amount of risk capital deployed to transactions that are exposed to wildfire risks.
The total for cat bond issuance that carries some level of exposure to wildfire risks reached $2.57 billion in 2023, then rose further to $2.84 billion in 2024.
Then, the pace of wildfire exposed cat bond issuance accelerated in 2025 to a record high of $5.55 billion.
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