Asia’s insurance-linked securities (ILS) market is entering 2026 with growing activity, but industry executives say its longer-term trajectory will hinge on whether more underwriting, structuring, and investment decisions are made within the region rather than offshore.
William Ho, chief executive officer of MS Amlin Asia Pacific, said Asia has moved past one-off ILS transactions and is now seeing a more consistent flow of deals, including private catastrophe bond-style structures. He said this reflects rising interest from reinsurers and investors, with current momentum expected to continue into next year.
“The market has expanded this year, and we expect that momentum to carry into 2026. The region is evolving from isolated transactions into a broader ecosystem. A few years ago, only one or two notable deals emerged; today, multiple reinsurers are exploring ILS, supported by a growing pipeline of private cat bond-style structures,” Ho said.
Ho also said MS Amlin plans to expand its role in Asia’s ILS market, pointing to investor demand for products with lower volatility and a wider range of risk options.
“We’re committed to supporting the continued development of the ILS market in Asia. Our ambition is to broaden our product offering across the risk spectrum. Investors are increasingly seeking lower volatility options, and we believe there are opportunities in the region that align well with that risk profile. We expect to share more details in the first half of 2026,” he said.
However, Ho said further growth will depend on stronger local capacity, particularly the presence of more ILS managers and decision makers based in Asia who can help speed up issuance and innovation.
“For the market to reach its next phase, we need more ILS managers and decision makers based in the region. This would accelerate both issuance and innovation. With diverse economies, a substantial protection gap, and a growing investor base, Asia is well-positioned to emerge as a global ILS hub,” Ho said.
Tim Yip, executive director and head of ILS Advisers, which acts as structurer and cornerstone co-investor for MS Amlin’s Phoenix Re solution, shared a similar view. He said interest from Asian investors is growing, but the lack of locally based managers continues to slow the development of domestic ILS and reinsurance markets.
“There’s growing interest in the asset class among local investors, but without managers based here in Asia, those assets often flow out of the region, hindering the development of the local reinsurance and ILS markets,” Yip said, adding that many opportunities in Asia require local expertise to access effectively.
“The best opportunities here typically remain local, and accessing them requires a strong on-the-ground presence. Asia’s greatest strength lies in its size and diversity, but this also makes it a challenging market to navigate without being locally established.”
