Prediction markets are capturing global media attention, raising questions about whether they could be considered reliable predictors for the insurance and reinsurance markets. As some of these platforms, including popular services Kalshi and Polymarket, develop the ability to predict hurricanes and other seasonal storms, it appears possible that they could be used for catastrophe coverage and potentially other risks in the future. In this Carrier Management article, Russ Banham interviews various industry experts about their opinions on these prediction markets and their ability to serve the insurance market. One of the experts interviewed is Dr. Robert Hartwig, a professor at the University of South Carolina, who states, “Prediction markets are fairly inflexible when it comes to factors such as retention levels and coverage limits.” To hear more from Dr. Hartwig and other industry experts, click here.