Institutional capital has matured into a structural component of global reinsurance infrastructure, accounting for nearly a fifth of total global reinsurance capital market capacity in the first-half of 2026 as the traditional underwriting value chain continues to unbundle, according to broker Aon. In a recent article, the broker highlights that

The global data centre build-out is creating unprecedented risk concentrations in natural disaster zones, and pushing traditional insurance capacity to its limits. Howden sees this as a prime opportunity for the capital markets, as catastrophe peak risk remains the foundations of the insurance-linked securities (ILS) asset class. According to Howden’s

For the insurance-linked securities (ILS) market, one of the most promising findings of Moody’s Ratings annual survey of reinsurance buyers is that 28% of respondents said they anticipate increased use of alternative capital sources in 2027. At a time when the ILS market has grown strongly and catastrophe bond issuance