Catastrophe Risk Futures

Catastrophe Risk Futures are financial contracts that allow insurers, investors, or governments to hedge against the financial impact of large-scale disasters like hurricanes or earthquakes. By purchasing these futures, they can transfer some of the risk of such events occurring, helping to stabilize financial stability and predictability. Essentially, they act as a form of insurance against rare but potentially costly disasters, enabling stakeholders to manage exposure more effectively and improve resilience against unexpected catastrophic events.