Property catastrophe reinsurance rates in Turkey fell by about 15% at the 1 January renewals, as capacity outweighed demand and the market tilted softer, according to Gallagher Re.
In its January 2026 First View report, Gallagher Re said renewal dynamics closely tracked Continental Europe.
Risk-adjusted pricing moved down on average, while capacity flooded into programmes, especially at the top end. In many placements, oversubscription passed 150% and, in some cases, reached 200%. Retentions barely moved, following two straight years of sharp increases.
Part of the easing traces back to the 2023 Kahramanmaras earthquake. Several cedants have now worked through the payback phase tied to that loss, after sharply increasing both rates and purchased limits in its aftermath. The unwind came quickly.
PERILS has updated its fourth loss estimate for the Kahramanmaras Earthquake Sequence of 6 February 2023 which affected large parts of south-central Turkey and neighbouring Syria.
Based on claims data collected from affected insurance companies, PERILS’ fourth estimate of the insured property market loss for the Kahramanmaras Earthquake Sequence is TRY 117 bin ($6.2bn at February 2023 exchange rates).
The figure compares to the previous PERILS estimate of TRY 92.8 billion issued six months after the event.
Property-CAT reinsurance renewals data for Turkey
| Metrics | Range |
| Pro rata commission (%) | 3 |
| Risk loss-free % change | -10 to 0 |
| Risk loss-hit % change | +20 to +30 |
| Catastrophe loss-free % change | -15 on average |
In line with the PERILS coverage definition for Turkey, the numbers include losses from the property line of business.
Demand for catastrophe XL capacity still rose by more than €1 bn, lifting total available market capacity to around €12 bn. That figure includes cover placed via the Turkish Catastrophe Insurance Pool.
Despite softer pricing, most reinsurers held or expanded their line sizes. Fresh capital barely showed up. Incumbents absorbed the extra demand without strain.
Gallagher Re described quoting behaviour as measured. Lead markets stayed commercial and aligned with broader European trends, rather than forcing discipline that the market clearly didn’t want.
Cedants secured higher per-risk capacities and event limits across most programmes. Limits increased on both risk XLs protecting retained books and gross risk XLs, with reinsurers meeting that demand.
The shift away from proportional treaties slowed sharply. After two years of migration toward non-proportional structures, proportional support now looks adequate. A new balance seems to have settled in, at least for now.
Traditional capacity has squeezed parametric products hard. “Cat-in-a-box” solutions felt the pressure. Many cedants cancelled parametric covers outright or renewed at sharply lower prices. Discounts ran as high as 40% versus last year.
For January 2026 renewals, Gallagher Re data show catastrophe loss-free renewals down around 15% on average.
Risk loss-free business ranged between flat and down 10%, while loss-hit risk renewals pushed up 20-30%. Pro rata commissions hovered near 3%. Cat loss-hit data wasn’t meaningful enough to generalise.
The message from the renewals is simple. Capacity is ample. Buyers know it. And for now, Turkey’s property-CAT market is pricing accordingly.
