Reinsurance companies are set to enter renewal negotiations from a position of capital strength, but the majority are expecting a challenging outcome, with prices expected to fall and terms and conditions expected to loosen further, a survey by Fitch Ratings found.

As the catastrophe bond market continues to expand and create further opportunities in the ILS market, there is also a growing demand being seen for portfolios that combine liquid cat bonds with carefully selected private ILS exposures, which according to Twelve Securis’ Cahal Doris, gives investors greater control over liquidity, diversification and risk-return objectives.

CatIQ, Canada’s insured loss and exposure index provider, has raised its insurance industry loss estimate for the June 2026 flooding event that impacted Montreal’s West Island and the surrounding areas to CAD $442 million, a 7.5% increase from its second loss estimate of CAD $411 million that was issued in August.

Executives at Howden Capital Markets & Advisory (HCMA) have indicated that as traditional casualty capacity remains constrained, casualty sidecars are becoming a genuine third pillar alongside traditional reinsurance and the balance-sheet, moving beyond being a specialty product for a select number of sophisticated investors.

Hurricane Polo is rapidly intensifying off the southwestern coast of Mexico and the strengthening trend is expected to continue, while the track remains uncertain at this time, which has brought the $175 million IBRD CAR Mexico 2024 (Pacific) parametric catastrophe bond into focus this week.

Property insurance claims severity and costs are rising in the United States, even during periods where the number of catastrophe events designated were stable. Verisk’s latest data shows the second-quarter of 2026 could become one of the most costly for insurers on an average property claims cost basis.

Property aggregate excess-of-loss (XoL) capacity has rebounded strongly driven by a 50% increase in traded limits, according to reinsurance broker Marsh Re, revealing that nearly 40% of buyers now integrate frequency protection into their XoL strategies, up from just over a quarter two years ago.

Enstar, one of the largest legacy and run-off reinsurance specialists in the world, has recently begun fronting for capital providers including insurance-linked securities managers and sees this new offering a diversifying solution for its toolkit and one it intends to selectively develop further, Anguel Zaprianov explained to Artemis in a recent interview.