It may be impossible to predict for certain the weather. But one thing is for sure—the weather has gone extreme, and is expected to get worse.
All sorts of disasters have hit records in terms of property damage and business interruptions never mind lives lost.

Last year, nearly half a trillion dollars worth of damage was directly linked to foul weather events. The storms that have historically hit every 100 years are now hitting every three years. More than 3,000 weather records were set last year. This year and for years to come, things are looking worse. That's why catastrophe (Cat) bonds are becoming all the rage.

Standard & Poor's has rated some $3.5 billion worth of Cat bonds so far this year—record levels, and double the amount for the same period just two years ago.

Cat bonds are typically linked to insurance, raising money in cases of catastrophe. The bonds usually stipulate that if the issuer suffers a loss from a pre-defined event (hurricane, blizzard, wildfire, etc.), the obligation to pay interest or principal is deferred or forgiven.

The National Weather Service reports that we may be in for one of the worst hurricane seasons in history. To be sure, Cat bonds will continue to rise.

The Financial Times recently did a fine primer on Cat bonds. You can read the piece here: Catastrophe bonds: Package of perils is a sound investment
Weather reports increasingly mean business.