A new report from Sage Advisory Services, the fixed income and alternative solutions manager, has highlighted that through ILS and catastrophe bonds’ ability to allocate capital across regions and perils, these instruments make a strong case for impact investing to move beyond mitigation and into resilience.
The report, authored by Bob Smith, President and Co-Chief Investment Officer, and Andrew Poreda, Vice President, Senior Research Analyst, emphasises that the world is facing a widening deficit in resilience, and how a growing fraction of the fixed income market is currently being built to help close that gap.
“Over the first half of 2026, global natural catastrophes generated an estimated $111–$142 billion of economic losses, yet only about $46–$47 billion was insured. Aon estimated that roughly 57% of first-half losses were uninsured, while Gallagher Re estimated that 68% of the $142 billion in losses was left uninsured. These figures extend a troubling pattern. In 2025, Aon reported $260 billion of natural-catastrophe losses and Swiss Re estimated a broader $424 billion global natural-catastrophe protection gap,” Smith and Poreda explain.
FULL ORIGINAL PUBLICATION HERE