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ILS market remains structurally healthy, but cycle management is key

Icosa Investments CEO Florian Steiger said the ILS opportunity set is becoming more selective as the market shifts into a more competitive phase after strong returns and renewed inflows.

Reported · Written up by our desk · Industry & Deals

Insurance-linked securities markets are in a “structurally healthy” and increasingly mature position after several years of strong returns and renewed inflows, Icosa Investments CEO Florian Steiger told Artemis.

Steiger said the ILS market has broadened versus previous cycles, supported by stronger infrastructure, improved modelling, and enhanced risk management capabilities, which provide a better foundation for navigating changing conditions.

He cautioned that normalization is bringing a more selective opportunity set, and he highlighted cycle management as a central challenge as the market moves into a more competitive phase.

Steiger pointed to the 2017 to 2022 experience as a reminder that attractive long term outcomes have come from adapting exposure through the cycle rather than maintaining maximum exposure at every point, adding that discipline means staying consistent with an investment philosophy while adjusting implementation to current opportunity conditions.

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