catastrophe reinsurance

After another half-year when Australian primary insurance giant Suncorp Group went over its natural hazards budget the company is hoping the softer reinsurance market conditions will allow it to reassess options for aggregate reinsurance or frequency protection at its next renewal.

Decentralised climate infrastructure platform dClimate has announced that it has launched Tyche, a blockchain-based platform designed to facilitate insurance risk transactions, which will initially focus on catastrophe reinsurance before expanding towards energy-linked weather derivatives and collateral facilities.

At the January 1st 2026 reinsurance renewals property catastrophe rates were broadly softer around the globe as the weight of capital in the market depressed prices, while broker Guy Carpenter’s indices show that rates-on-line softened fastest in Europe.

According to equity analysts from Mizuho Americas, property catastrophe reinsurance rates are expected to remain adequate but less profitable in 2026 across peak zones and perils, while reinsurers are projected to deliver strong returns in 2025, aided by retained earnings growth and increasing ILS participation.

Following a field trip to Bermuda, analysts at TD Cowen have concluded from their discussions on the island that higher-layer property catastrophe reinsurance rates could be down 20% or more at the January 2026 renewals, while attachment points are largely holding, but the renewal is seen as running late.

While rate decreases have persisted within catastrophe exposed property reinsurance, analysts at Amwins believe they are beginning to trend toward moderation, anticipating that any continued downward movement will likely shift to between 10% to 15% as 1/1 approaches, but also noting that underwriting standards have loosened modestly.

Germany’s insurance industry has introduced a proposed natural catastrophe reinsurance vehicle called Elementar Re, intended to serve as a backdrop for primary insurers facing increasing losses associated with climate risk.

Irrespective of lower claims experience over the last year in natural catastrophe reinsurance business, Hannover Re’s German subsidiary E+S Rückversicherung AG has said that it expects demand for property catastrophe reinsurance will continue to rise, while insurance-linked securities (ILS) business is also seen as an area of opportunity for the group.

Auckland, New Zealand-headquartered insurer Tower Insurance has extended its catastrophe reinsurance protection for the coming year at its latest renewal, securing limit to cover a first-event of up to NZ $915 million, while experiencing improved renewal pricing thanks to structural adjustments.

Legislation that calls for a Federal Catastrophe Reinsurance Program to be established has been resurrected in the United States Senate, with more support this time around and still a section of the INSURE Act highlighting the importance of capital markets alternatives to reinsurance, such as catastrophe bonds.