The Insurance-Linked Securities (ILS) Market is transforming, set to reach USD 270.0 Billion by 2035 at 9.2% CAGR. Discover how key industry leaders are driving strategic innovation.
A Market Reshaping for Tomorrow's Industry
We observed that the Insurance-Linked Securities (ILS) market is undergoing a profound transformation. Capital providers and risk intermediaries are moving beyond traditional placement models toward more structured, analytically rigorous approaches.
The market is set to expand from USD 112.0 Billion in 2025 to USD 270.0 Billion by 2035, reflecting a compound annual growth rate (CAGR) of 9.2% over the 2026 to 2035 forecast period. This expansion reflects growing investor appetite for uncorrelated returns, deeper modeling sophistication, and broader participation across global catastrophe-exposed jurisdictions.
For an In-depth Analysis of the Insurance-Linked Securities (ILS) Market, .
The market's expansion is clear across its primary segments:
Insurance-Linked Securities (ILS) Market by Primary Segment, 2026–2035 (USD Billion)
| Primary Segment | 2025 (USD Billion) | 2035 (USD Billion) |
|---|---|---|
| Catastrophe Bonds and Insurance-Linked Notes (Issued Securities) | 53.76 | 134.78 |
| Structuring, Modeling and Risk Analytics Services (Cat Models, Trigger Design, Ratings Support) | 35.84 | 82.94 |
| Fund Management, Trustee and Collateral Administration Platforms | 22.40 | 56.16 |
| Total | 112.00 | 273.9 |
Source: Banking Industry Insights Analysis, 2026
Market leadership is increasingly determined by the ability to serve multiple layers of the value chain. Issuance volumes remain the largest pool, but analytics and administration capabilities are attracting disproportionate strategic attention.
Swiss Re
Swiss Re occupies a central position in the ILS ecosystem through its Alternative Capital Partners platform, which brings together capital markets, retrocession, and ILS expertise under one structure. Its global reinsurance footprint gives it deep access to catastrophe risk origination across North America, Europe, and Asia-Pacific. This breadth allows the firm to act as both risk taker and market architect.
In February 2026, Swiss Re published its ILS market insights report for July 2026 through its Alternative Capital Partners division, signaling continued engagement with investor and sponsor communities (Swiss Re Corporate Communications). The publication is currently at the planned deployment stage and reflects ongoing commentary on market conditions rather than a completed transaction. It underscores the firm's role in shaping market intelligence that informs pricing and allocation decisions.
For stakeholders, Swiss Re's integrated model offers a template for how reinsurers can strengthen investor confidence while capturing a share of the USD 147.7 Billion in incremental opportunity projected through 2035. Institutions that align with platforms offering both analytical transparency and capital access are likely to gain the most from the forecast expansion.
GAM Investments
GAM Investments competes in the ILS space as an asset manager with dedicated capabilities in alternative and insurance-linked strategies. Its positioning rests on investment management discipline, portfolio construction expertise, and access to diversified global catastrophe exposures. The firm's presence across multiple regions supports its ability to source and manage risk across varied jurisdictions.
In April 2025, GAM Investments and Swiss Re announced a new catastrophe bond and ILS investment partnership, disclosed through an ad hoc announcement under Art. 53 of the listing rules (GAM Investments Corporate Communications). The partnership has reached the shipped stage, indicating that the collaboration has moved from announcement into operational execution. It demonstrates how asset managers and reinsurers are combining distribution and risk expertise to meet growing investor demand.
The partnership positions GAM to capture a meaningful share of the market's expansion, particularly within issued securities, which are projected to rise from USD 53.76 Billion to USD 134.78 Billion by 2035. Its regional reach strengthens the firm's ability to pair investor capital with diversified catastrophe risk across the forecast horizon.
Schroders
Schroders brings a specialized investment perspective to the ILS market, with dedicated capabilities in portfolio construction, risk assessment, and investor education around public and private ILS allocations. Its research-led approach helps institutional clients evaluate how catastrophe-linked assets fit within broader multi-asset frameworks. This analytical orientation distinguishes the firm in a market where allocation decisions increasingly depend on transparent modeling.
In February 2026, Schroders published a practitioner's guide comparing public and private ILS, outlining key portfolio construction considerations for investors (Schroders Corporate Communications). The guide is at the planned stage and serves as an educational resource rather than a transaction disclosure. It reflects a broader industry trend toward greater investor literacy in catastrophe-linked assets.
Schroders' advantage lies in its ability to translate complex ILS structures into actionable portfolio guidance. As the market scales toward USD 270.0 Billion by 2035, firms that educate and equip allocators will be well placed to capture sustained inflows, particularly within the fund management and collateral administration segment, which is forecast to grow from USD 22.40 Billion to USD 56.16 Billion.
GallagherRe
GallagherRe provides foundational reinsurance and analytical capabilities that support the broader ILS value chain. Its strength lies in risk advisory, market intelligence, and the integration of underwriting insight with capital market access. These capabilities make the firm a critical connector between sponsors seeking protection and investors seeking exposure.
In early 2026, GallagherRe and Gallagher Securities conducted a survey of ILS investor views, complemented by insights from market participants, to gauge sentiment heading into the year (GallagherRe Corporate Communications). The research is at the planned stage and offers a window into investor priorities around return expectations and allocation strategy. Such intelligence helps market participants calibrate issuance timing and structure.
GallagherRe's role as an enabler is significant. By informing both sponsor and investor decisions, the firm supports the market's progression toward USD 270.0 Billion by 2035, with analytics-driven services expected to contribute substantially to the USD 147.7 Billion forecast opportunity.
Milliman
Milliman differentiates itself through actuarial depth and advanced modeling tools that support risk evaluation across insurance-linked transactions. Its consultants combine international experience with specialized analytics, enabling clear communication between sponsors, investors, and regulators. This technical credibility is central to market confidence in structured catastrophe products.
In early 2026, Milliman published an insight piece on actuaries and the growing ILS market, highlighting how actuarial rigor provides comfort to investors and regulators alike (Milliman Corporate Communications). The publication is at the planned stage and reflects the firm's thought leadership role rather than a discrete transaction. It reinforces the importance of independent modeling in establishing trust across the ecosystem.
Over the long term, Milliman's actuarial and modeling capabilities form a durable competitive moat. As the structuring, modeling, and risk analytics segment grows from USD 35.84 Billion to USD 82.94 Billion by 2035, firms with proven technical credibility will be positioned to shape trigger design, ratings support, and regulatory dialogue for years to come.