Harneys and droppRWA plan to issue tokenized catastrophe bonds in Bermuda in early 2027, with each token representing legal ownership of the underlying bond. The proposed structure would seek investment for defined risks such as hurricanes, floods, typhoons, wildfires and earthquakes that can be difficult or costly to insure.
Natural disasters caused $220 billion in economic losses in 2025, while insurance covered $107 billion. Catastrophe bonds transfer specified disaster risks from insurers to capital-market investors, whose principal can be used to compensate an insurer or sponsor if agreed trigger conditions are met.
The proposed tokenized structure could accommodate smaller ownership interests than conventional offerings, many of which require minimum investments of $250,000 or more.
Harneys and droppRWA say the investor register, eligibility checks and payment process would operate on a legally enforceable onchain system. The arrangement would remain subject to securities, insurance and investor-protection rules, and any platform administrator would need approval and licensing under Bermuda’s digital-asset framework.
The plan comes as coverage gaps remain especially large in the Asia-Pacific region, where 91% of disaster losses in 2023 were uninsured. Limited claims data and catastrophe models can make it harder to price coverage in high-risk areas. Tokenization would not reduce the cost of disasters or guarantee cheaper insurance, but smaller ownership units could broaden access to insurance-linked securities while keeping investors exposed to clearly defined catastrophe risks.
A May transaction arranged for Jamaica provided $200 million in hurricane coverage, replacing an earlier arrangement that paid out after Hurricane Melissa in 2025. Jamaica’s finance minister described catastrophe bonds as an important way for the country to access capital markets as part of its resilience strategy.