Strong investor demand and record catastrophe bond issuance, underpinned by increased participation by both insurers and reinsurers, is supporting the continued expansion of the insurance-linked securities (ILS) market, as Moody’s Ratings reports that carriers are using ILS more strategically in the competitive reinsurance market environment.
Citing broking group Aon’s USD 144.5 billion total for the level of ILS capital in the global reinsurance market at half-year 2026, Moody’s Ratings says that the six month period has “reaffirmed the ILS market as a deep and resilient source of insurance risk capital.”
The strong growth in ILS capital has been supported by growing investor interest in the asset class as catastrophe bond issuance again broke records in the first half of 2026, strengthening the share of ILS within insurers’ and reinsurers’ risk-transfer programmes.
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