Advances in the theory and practice of catastrophe bonds

In the context of intensifying global climate change and the increasing frequency of extreme weather events, traditional insurance and government disaster relief systems are facing growing challenges. Catastrophe bonds (often referred to simply as "cat bonds"), which transfer catastrophe risks from insurance and reinsurance markets to capital markets, have emerged as an innovative financial tool. From the unique perspective of financial meteorology, this paper provides an in-depth analysis of the core supporting role of meteorological technology—particularly data collection, numerical forecasting, and artificial intelligence (AI) large-model technologies—throughout the entire lifecycle of catastrophe bonds, including product design, pricing, issuance, triggering, and settlement. This study outlines the overall landscape of the global catastrophe bond market and then focuses on the emerging development, policy-driven initiatives, and distinctive models in the Chinese market. Through comparative analysis, it identifies challenges China faces in terms of catastrophe risk data infrastructure, refined modeling, and market ecosystem. Finally, the paper proposes that future efforts should leverage frontier technologies such as AI large models, along with strategies such as constructing a national catastrophe risk data platform, deepening cross-sector integration of meteorology and finance, and enhancing the core capabilities of meteorological services, to provide solid scientific and technological support for establishing a multi-layered catastrophe risk dispersion system in China.