Natural disasters

The cost is down 16.5% from last year, according to The Insurance Information Institute.

Climate risk models, which are widely used in the insurance industry, don't typically make detailed projections for extreme heat.

Investment funds based on parametric insurance have the potential to beat cat bond returns, according to Rhodri Morris, a portfolio manager at Twelve Securis.

The chance at a piece of strong returns has encouraged investment banks, hedge funds and debt investors to vie for contracts to fund the litigation, according to people involved in transactions.

Predicting environmental risks that follow a major natural disaster represents an untapped opportunity for insurance , according to head of reinsurance firm Swiss Re AG's China unit.

Unless adequately shielded from extreme weather events, assets designed to help fight climate change may risk access to insurance.

"We want to wean off of FEMA, and we want to bring it down to the state level," Trump told reporters on June 10 during a briefing in the Oval Office.

Hedge funds are facing pushback in California as their bets tied to insurance claims stemming from the Los Angeles wildfires are attacked as unethical.

Catastrophe risk information from government bodies and academic institutions would make it possible to insure more homeowners based on more granular assessment, according to insurance industry professionals.

Insured losses from natural catastrophes could soar to $145 billion this year as population growth, urban sprawl and climate change combine to supercharge risks, according to a report by Swiss Re Institute.