Hurricane Lee is just the latest in what is expected to be an above-normal hurricane season this year. To help potentially pay for damages borne of these extreme weather events, companies in the insurance industry sell catastrophe bonds. There is just over $38 billion in outstanding cat bonds on the market right now, and she thinks it could push over $40 billion by the end of the year. How cat bonds work Cat bonds pay the issuer when a predefined disaster risk is realized, known as an attachment point. Investing in cat bonds While catastrophe bonds mainly target institutional investors, Amundi's Pioneer Cat Bond Fund has A shares available for retail investors.

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Persons: Hurricane Lee, Corey Anger, Guy Carpenter, Artemis, Anger, Steve Evans, Amundi's, Morningstar Organizations: National Oceanic, Atmospheric Administration, GC Securities, Treasury, AAA, World Bank, Cat Bond, Artemis Deal Locations: United States, U.S