2026-09-17 · Source: ARTEMIS Reinsurance
Summary in 3 Points • Institutional capital now constitutes nearly 20% of global reinsurance capital market capacity, according to Aon • Aon highlights Bermuda and Lloyd's as key platforms enabling scalable capital access for institutional investors • Aon emphasises the competitive advantage of capital design in matching capital to specific risks --- Institutional capital has become a fundamental part of the global **reinsurance** infrastructure, now accounting for nearly 20% of total global reinsurance capital market capacity in the first half of 2026, according to broker **Aon**. The traditional underwriting value chain is unbundling, allowing investors to access underwriting returns directly through platforms like **Bermuda** and **Lloyd's**, bypassing the need for traditional rated balance sheets. Aon notes that the competitive edge in the sector is shifting towards the design, governance, and mobilisation of capital against emerging risks, with data analytics and flexible market structures playing a crucial role. For the **London Insurance Market**, the integration of institutional capital through platforms like **Lloyd's** is pivotal. Lloyd's offers institutional investors regulated, rated access to a global specialty insurance franchise, which eliminates the necessity for investors to develop such infrastructure independently. This development impacts the **specialty lines** and **insurance-linked securities (ILS)** markets, where London's role as a hub for innovative reinsurance solutions is reinforced. The ability to design and deploy capital efficiently will be crucial for London Market participants to maintain their competitive advantage in a rapidly evolving environment. **Underwriters** and **brokers** in the London Market should focus on enhancing their platform capabilities to integrate origination, underwriting insight, and analytics into coherent capital solutions. This approach will be essential for attracting investors and cedents who seek partners capable of evaluating the full capital stack. **Risk managers** should prioritise understanding the implications of capital design and governance to optimise their risk transfer strategies. The emphasis on **digital infrastructure** and **data analytics** will be key in closing protection gaps and underwriting new risk pools, ensuring the London Market remains at the forefront of reinsurance innovation.