ILS no longer alternative; faces nuance risk

ILS activity exploded in 2025, with Aon reporting the “most active and dynamic twelve-month period in ILS market history, with alternative capital reaching $121 billion as of June 30, 2025.” (‘ILS Annual Report,’ published September 2025) This has called into question the status of ‘alternative’, particularly as the capital markets story unfolded largely as expected. ILS continued its expansion. But the more consequential shift was not quantitative. It was conceptual.