Tokenized catastrophe bonds target uninsured disaster gap under new Harneys-dropRWA plan
Swiss Re estimates natural disasters caused $220 billion in losses last year, while insurance covered $107 billion. Catastrophe bonds are growing, but coverage gaps remain especially large in Asia-Pacific. Bermuda law firm Harneys and tokenization platform droppRWA plan to issue tokenized catastrophe bonds early next year, with tokens representing legal ownership and potentially enabling smaller investments than conventional offerings, which often require at least $250,000. The structure would remain subject to securities, insurance and investor-protection rules, and investors would still face defined disaster risks. Supporters say tokenization could help raise capital for risks that are difficult to place, such as floods and typhoons, but it will not reduce disaster losses or guarantee cheaper insurance. A World Bank-arranged $200 million hurricane cover for Jamaica illustrates the existing use of catastrophe bonds for public protection.
