Reinsurance renewals news

As per reinsurance broker Howden Re, industry loss warranties (ILWs) are expected to return to more normalised growth in 2026, as the January 1st reinsurance renewals showed rates falling by 10% to 20%.

As per broker Guy Carpenter’s 1/1 reinsurance renewals report, there was a notable rise in demand for property retrocession lines during the January renewals, with the company noting that ongoing growth in supply contributed to some price reductions and broader coverage.

Australian primary insurance group IAG has renewed its main catastrophe reinsurance tower for 2026 at the same size as the prior year providing occurrence protection for two events of up to $10 billion, while also expanding its quota share reinsurance to now cover 25% of its consolidated business including the recently acquired RACQ Insurance.

The outstanding market for collateralized reinsurance sidecar structures has continued to grow at pace thanks to investor interest in the structures, with the latest estimate from Aon Securities putting invested capital in sidecar vehicles at a new high of $19.6 billion.

Alternative reinsurance capital, so that deployed through insurance-linked securities and related collateralized structures, reached a new high of $124 billion as of September 30th 2025, according to Aon and the broker expects the growth trend to persist as third-party investors show “consistent” appetite for returns from the sector.

After a significant year for insurance-linked securities (ILS) in 2025, as the market transitions into 2026, it will be essential to observe how the industry evolves, especially through the introduction of new product types, the involvement of first-time participants, and the expansion of peril classes, according to Lara Mowery, Chief Commercial Officer at reinsurance broker […]

At the January 2026 reinsurance renewals reinsurance broker Howden Re estimates that risk-adjusted pricing for property catastrophe treaty business declined by 14.7%, marking the largest year-on-year reduction since 2014, while property retrocession pricing fell further by 16.5%.

The insurance-linked securities (ILS) market is exerting growing influence on global reinsurance market dynamics according to broker Gallagher Re, who reports property catastrophe pricing as down between 10% and 20% at the key January 2026 renewals.

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.

Third-party capital deployed in reinsurance through insurance-linked securities and other alternative structures is now forecast to have grown over 12% during the course of 2025 to a record $120 billion, as broker Guy Carpenter and AM Best lift their projection from the 7% expansion anticipated earlier this year.