A recent poll of insurers in the United States, undertaken by broker Aon’s Capital Advisory division, found that within those carriers’ capital management plans for 2025, insurance-linked securities (ILS) and third-party reinsurance capital solutions are a significant feature.
With the market having been challenging for a number of years, but insurers responding with a growth mindset against a backdrop of positive rate momentum, demands on capital are shifting, broking giant Aon says.
One interesting finding for our audience from the poll, is that the US insurance industry looks set to continue exploring the capital markets for reinsurance and risk transfer solutions, with 15% of respondents specifically indicating ILS solutions as within their 2025 capital management plans.
Growth plans are evident, as too is the fact that the majority of insurers see their catastrophe retentions as manageable, relative to surplus, although many still see them as meaningful compared to earnings.
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