Property cat rates fall 15-20% in LatAm at renewals, parametrics gain traction: Howden Re

At the July 1st 2026 reinsurance renewals property catastrophe excess of loss programmes in Latin America (LatAm) saw rate reductions fall in the range of 15% to 20%, while parametric products gained significant traction across the market, reports broker Howden Re.

Howden Re noted that at the 7/1 2026 reinsurance renewal in Latin America, existing local players were joined by expanded interest from Bermuda, London and MGA markets, deepening a supply base that gave cedents meaningful leverage across both pricing and programme design.

“The clearest expression of that leverage was in risk-adjusted pricing. Property catastrophe excess of loss programmes saw rate reductions in the range of 15% to 20%, with downward pressure compounded by a notable trend of over-placement. Programmes attracted more capacity than required, a dynamic that accelerates pricing competition and adds further downward pressure on risk-adjusted pricing,” Howden Re explained.

Howden Re also outlined two distinct emerging themes that were present at the LatAm renewals.

“Low-attaching, high rate-on-line layers on both catastrophe and risk programmes are attracting increasing interest in structured solutions, as cedents and reinsurers explore more tailored approaches to risk transfer at the more volatile parts of the tower,” Howden Re said.

At the same time, Howden Re observed that parametric products are gaining traction within the LatAm market, moving from a niche consideration to a more broadly evaluated alternative and supplemental coverage option.

This momentum comes as the region’s vulnerability to major natural catastrophes and climate shifts increases the demand for these rapid, transparent payout structures

According to the broker, the softening reinsurance environment extends beyond pricing, with abundant proportional capacity driving ceding commissions up by a further two to three percentage points as reinsurers compete for access to cedent portfolios

However, as proportional cessions increase, cedents amongst LatAm are reportedly purchasing smaller catastrophe excess of loss limits, a structural shift that the broker states reflects both the availability of proportional protection and the economics of a well-supplied market.

“Reinsurers are also using the renewal to broaden their footprint. With property catastrophe capacity comfortably placed, appetite has extended into casualty and specialty lines, as markets seek to round out their Latin American portfolios with supplemental business,” Howden Re added.

April McLaughlin, Head of Howden Miami, commented: “Latin America is attracting a broader and more competitive reinsurance market than we have seen in some time. The interest from Bermuda, London, and MGA markets is not incidental. It reflects a genuine reassessment of the region’s risk-adjusted opportunity. Our role is to help cedents navigate that environment with clarity and purpose, securing not just competitive pricing but structures that will serve them well beyond this renewal cycle.”

Carlos Garcia, Managing Director, Howden Re, added: “What stands out at this renewal is not just the volume of capacity available, but the increasing willingness to explore alternative approaches to risk transfer. Cedents are thinking more creatively about their programmes, exploring structured solutions at the lower end of the tower and giving serious consideration to parametric products as part of their overall coverage strategy. That sophistication is a healthy development for the market, and one we expect to continue.”

To conclude, Howden Re outlined that the Latin America reinsurance market enters the second half of 2026 with capacity at levels that continues to favour buyers.

The broker emphasised that the structural trends that were visible at this renewal, which includes over-placement, rising ceding commissions, appetite migration into casualty and specialty, and growing interest in parametric and structured products, demonstrates that abundant capacity is influencing not only pricing, but also programme design.

“As competition remains strong, cedents are well positioned to evaluate a broader range of risk transfer options than in recent years,” Howden Re concluded.

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