Broking giant Aon has today urged its insurer clients to leverage the record levels of reinsurance and third-party or insurance-linked securities capital as a growth-driver, saying creative use of capital and access to all its forms is increasingly important.
With a record $800 billion of reinsurance capital at June 30th 2026, a new high $144.5 billion of that being from third-party or alternative sources, Aon believes the opportunity is there for protection buyers to harness this abundance to fuel their future growth.
“Increased competition among capital providers is resulting in access to more flexible structures, broader coverage and innovative solutions for buyers,” Aon explained alongside the release of a new report just in advance of the 2026 Monte Carlo Rendez-vous event.
Adding that, “As market conditions evolve, product value, capital relief and access to third-party capital are becoming increasingly important.”
Aon notes that there are three priorities for reinsurance buyers, using capital creatively to support growth, aligning their risk with capital and product strategies and accelerating performance through faster, more informed decision making.
“The January reinsurance renewals represent an opportunity for insurers to think differently about how they deploy capital,” explained Steve Hofmann, CEO of the Americas, Reinsurance, Aon. “In a competitive marketplace, the conversation is increasingly about flexibility, structure and long-term value creation, rather than price alone.”
Property conditions continue to improve for reinsurance buyers, while increased third-party capital participation in casualty lines is also highlighted as a source that helps stabilise this market.
“Today’s reinsurance market gives insurers more options than they have had in years,” Alfonso Valera, CEO of International, Reinsurance, Aon said. “The opportunity now is to use that flexibility strategically, balancing growth ambitions with risk appetites while building resilience over the long term.”
Despite increased competition among capital providers, Aon points out that reinsurers are on-track for a fourth consecutive year of strong results at this time.
The same can be said of insurance-linked securities capital providers, with returns down due to the softening of reinsurance prices, but still at or above long-term averages at this stage of the year.
Aon urges insurers to take advantage of record capital levels and greater flexibility in the reinsurance market.
While also saying buyers need to develop integrated risk and capital strategies, with the support of robust analytics, advisory capability and the use of innovative risk transfer solutions.
“As insurers seek to optimize capital deployment and risk transfer structures, analytics is increasingly becoming the foundation for informed strategic decision-making,” George Attard, Chief Strategy Officer and Global Head of Analytics, Reinsurance, Aon explained.
“Data-driven insights can help organizations better understand portfolio impacts, evaluate future risks and make more confident underwriting, portfolio management and capital allocation decisions.”
Also read:
– Reinsurance capital grows, ILS investor base broadens = more savings to come for clients: Aon.
– Strong ILS demand and continued growth expected at year-end and in 2027: Pennay, Aon.
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