Insurance linked securities news, ILS news

As asset-driven sidecars expand in the casualty market, focus is shifting from capital efficiency to risk management. Given this, Ledger Investing indicates that turning collateral into a second source of return requires market participants to underwrite the supporting asset portfolio with the same discipline as the liabilities.

Moody’s has launched Risk InvestorIQ, a dedicated catastrophe risk analytics and portfolio management application to provide ILS investors and risk professionals with an environment to evaluate transactions and gauge their portfolio impact.

Insurance-linked securities investors must broaden their mandates or risk losing relevance with cedents in a softening reinsurance market flush with capacity, according to Shiv Kumar, CEO of Marsh Securities, speaking in an interview at the 2026 Rendez-Vous de Septembre.

A busy August in catastrophe loss terms from severe weather activity has resulted in large US insurer Allstate reporting $748 million in pre-tax losses, which has lifted the total across the current annual aggregate risk period for its catastrophe bonds to $3.15 billion so far.

Pillar Capital Management, the Bermuda-based specialist collateralized reinsurance and insurance-linked securities (ILS) investment manager, has adopted Ultrassure, an AI contract intelligence platform for insurance and reinsurance, to support its contract review and underwriting workflows.

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.

The Florida State Board of Administration, allocating to insurance-linked securities and reinsurance for the Florida Retirement System pension plan, remains focused on navigating the softening market environment by adding more diversification within the asset class, with a Lloyd’s specialty investment moving through its pipeline still.

While property reinsurance and insurance-linked investment strategies are often viewed as carrying significant tail risk, Agecroft Partners believes that carefully constructed portfolios and disciplined underwriting can help to manage downside volatility more effectively than headline risk profiles may suggest.

As billions of dollars continue to flow into new infrastructure such as AI data centres, the re/insurance industry will be forced to rethink traditional approaches to risk modeling, according to Arbol’s Sid Jha, who emphasises that data-driven solutions will play a critical role in managing climate volatility and boosting resilience.

Under certain scenarios, a category 5 hurricane ploughing into Miami or Tampa Bay has the potential to drive more than US $300 billion of losses across the global insurance and reinsurance market, Swiss Re’s Institute said today, while also explaining the importance of reinsurance and ILS capital in protecting the state.