catastrophe reinsurance

Hannover Re’s property and casualty reinsurance subsidiary in Germany anticipates continued strong reinsurance demand at the next rounds of renewals, but notes that rising capacity levels are driving more competition on pricing and terms, while also highlighting insurance-linked securities (ILS) as a complementary offering for clients.

Tower Insurance, the Auckland, New Zealand-headquartered general insurer, has capitalised on favourable reinsurance market conditions to expand its catastrophe coverage again, buying first-event limit of up to NZ $970 million at its renewal, while experiencing improved pricing for the second year in a row.

Global reinsurance firm Hannover Re said that natural catastrophe risk pricing remains “technically risk adequate” but notes an expectation that pricing will likely continue to soften at renewals in 2027. However, attractive opportunities continue to be seen and the company said it “is prepared to make additional capacity available.”

Property catastrophe reinsurance rates-on-line continued to fall at the April 1st renewals and for the United States, broker Guy Carpenter’s index now shows that 2026 is experiencing the sharpest fall in US property cat pricing since 2014.

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.