As the reinsurance sidecar market keeps growing, GC Securities is placing significant emphasis on this sector as a major focus for 2026, while the firm also sees a need for greater attention on helping clients secure aggregate capacity for secondary perils, executives from the firm told Artemis in a recent interview.GC Securities is the capital markets and insurance-linked securities (ILS) specialist unit of reinsurance broker Guy Carpenter.Artemis recently spoke to Cory Anger, Managing Director and Shiv Kumar, President of GC Securities in a recent interview, where they both explained what challenges and opportunities they see for their business and the ILS sector in 2026.Beginning with sidecar structures, which have experienced significant growth, primarily due to heavy investor interest, the capital invested into sidecar vehicles In Guy Carpenter’s 1/1 2026 renewals report, the broker also highlighted that Speaking to Artemis, Anger outlined how GC Securities plans to prioritise sidecars throughout 2026.

“Sidecars are a big focus for us in 2026.That market is poised for more activity.While we have executed sidecar transactions for our clients for a number of years, we see fresh opportunity as the product expands beyond catastrophe risk to cover casualty lines as well as multiline and whole account portfolios,” Anger explained.

“Newer transaction structures allow investors to exit (including via legacy markets) longer tail business and the combination of elevated rates and leverage makes them attractive for large asset accumulators.“We will be helping our clients place sidecars as a means to complement traditional reinsurance capacity and strategically gain access to the capital markets.” Guy Carpenter is already making an impact across the sidecar market so far in 2026, that offers dedicated resources to help clients manage capital, volatility, and growth through comprehensive solutions.Moving forward, we asked the executives to name what challenges and opportunities they believe the ILS sector may face over the coming year.

“An important challenge for our clients is to find aggregate capacity for their secondary perils such as tornado, hail, winter storms and wildfires, which for some clients have become primary perils,” Kumar explained to Artemis.He continued: “Increased frequency and the corresponding losses over the last several years can make investors hesitant to participate in aggregate structures which include these perils.We believe that the ILS sector has to provide competitive coverage to meet the real-world needs of its client base or otherwise run the risk of becoming a niche market.” Turning attention to the private ILS market, Kumar told Artemis that its been particularly interesting to see the growing usage of the ILS space by managing general agents (MGAs) and managing general underwriters (MGUs).

“Besides issuing cat bonds for them with their fronting insurers, GC Securities have structured several private transactions in collateralized quota share format to provide them capital relief and hedge their attritional or sideways exposure.As that ecosystem develops further, we expect the capital light entities to become significant users of ILS capacity,” Kumar said...

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