Secondary Market for Global Reinsurance Improves Capital Efficiency
Discover how a secondary reinsurance market could improve capital efficiency, lower WACC, boost underwriting flexibility and support more efficient pricing
Reinsurance
Reinsurance allows insurers to remain solvent by recovering some or all amounts paid to claimants.
Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event.
Facultative coverage protects an insurer for an individual or a specified risk or contract. If several risks or contracts need reinsurance, they a renegotiated separately. The reinsurer holds all rights for accepting or denying a facultative reinsurance proposal.
Reinsurance reduces the net liability on individual risks and catastrophe protection from large or multiple losses. The practice also provides ceding companies, those that seek reinsurance, the capacity to increase their underwriting capabilities in terms of the number and size of risks.
Global Reinsurance Pricing Softens at 1/1, 2026 Renewals as Capital Peaks
Global reinsurance pricing fell more than expected at Jan. 1, 2026 renewals, with abundant capital, weak catastrophe support, and easing terms
Lloyd’s Warns of Faster Softening Reinsurance Rates as P&C and Cyber Weaken
Reinsurance rates in several lines softened quicker than anyone expected this year, especially in casualty and cyber, yet trading conditions across the Lloyd’s market still look reasonably favorable
Global Re/Insurance Sector Growth: 3 Strategic Shifts for Re/Insurers
Re/insurance industry is showing strong momentum. Fund and Insure domain as the big opportunity—potentially generating $17 tn in gross value by 2035
Reinsurance Market Faces Post-Peak Pricing With Stable Sector Outlook
Global reinsurance market has entered a post-peak pricing phase, with earnings expected to moderate in 2025–2026
Reinsurance Market Strengthens in 2025 as Capital Inflows Grow
The global reinsurance sector has undergone a notable transformation since the market reset, drawing sustained attention from investors and analysts
Reinsurance Rates Ease in Europe Amid Stable Market Outlook
Reinsurance pricing in the European reinsurance market has started to ease after several years of steep increases. Still, underwriting standards remain strong
Using Innovative AI Models to Predict Relative Performance for Re/Insurers
Accurately predicting underwriting performance is crucial for stakeholders, but traditional methods often fall short
Falling Prices and Looser Terms Challenge Reinsurers’ Underwriting Margins
Softer pricing at reinsurers’ June and July reinsurance renewals supports view that abundant capacity and rising competition will continue to pressure prices
July 1 Reinsurance Renewals Show Competitive Market & Rate Reductions
Reinsurance buyers generally experienced a more competitive reinsurance market at the July 1 renewal compared to recent years, with capacity available even where demand increased
Global Reinsurers Report Strong 2024 Results with Positive Outlook for 2025
Global reinsurers reported strong results with a continued capital build driven by strong retained earnings. The reinsurance industry’s reported and underlying ROE remained well
Bermuda Life Reinsurers Gain Ground Amid U.S. Annuity Growth
Life reinsurers based in Bermuda have recorded increased activity as annuity sales rise in the U.S. and recent regulatory changes
European Reinsurance Market Strengthen ROE, Capital & Reserves Amid Market Shifts
European reinsurers recorded stronger return on equity (ROE) in 2023 and 2024, exceeding their cost of equity in three of the last four years
Global Re/Insurers Improved Underwriting Results & Capital Positions
Global re/insurers reported improved underwriting results and capital positions. These gains came alongside rising uncertainty around reserve development and expanding loss gaps
Bermuda (Re)Insurers Face Margin Pressure but Maintain Strong Returns in 2025
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts
Europe’s Largest Reinsurers Reported Strong Financial Results
Europe’s four largest reinsurers—Munich Re, Swiss Re, Hannover Re, and SCOR—reported strong financial results in 2024
Impact of GLP-1 Receptor Agonists on Medical Trends and Reinsurance
How GLP-1 therapies are altering medical practices and insurance structures, prompting reinsurers to adjust their strategies to align with emerging risk profiles
Life Insurers’ Investment Risks and Offshore Reinsurance Threaten Stability
U.S. Financial Stability Oversight Council said
there has been a shift in the composition of life insurers’ liabilities and an increase of private equity firms
U.S. Life Insurers Use Reinsurance to Reduce Long-Term Care Insurance Risk
U.S. life insurers have used reinsurance to reduce exposure to long-term care (LTC) insurance. The transactions strengthen balance sheets, improve capital efficiency
2025 Lloyd’s Market Policies & Practices Report Shows Progress Toward Inclusion & Performance
Lloyd’s has shared the results from the 2025 Lloyd’s Market Policies and Practices (MP&P) return with market firms, which shows continued progress towards an inclusive
EU Public-Private Reinsurance Scheme for Climate-Related Losses
EU insurance markets could gain if recent proposals for a bloc-wide public-private reinsurance scheme for climate-related losses move forward
1/1 Reinsurance Renewals: Capacity Expands, but Underwriting Discipline Holds
Reinsurance renewals for 2025 reflect a shift in market conditions. Property reinsurance rates have softened, though profitability remains strong
Global Reinsurers to Maintain Strong Profitability in 2025
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts were renewed on 1 January
New War Risk Reinsurance Facility for Ukraine’s Commercial Property Sector
McGill in partnership with FortuneGuard and ARX introduced a new war risk reinsurance facility to provide commercial property coverage in Ukraine
London Re/Insurance Market Strengthens Digital & Enhanced Underwriting
The London re/insurance market sees a growing push toward digital approaches. Enhanced underwriting stands out as a new direction for companies
Lloyd’s Pandemic Model Projects $13.6 trln Global Economic Loss Over 5 Years
A potential future human pandemic could cause $13.6 tn in global economic losses over five years, according to a systemic risk scenario from Lloyd’s
Lloyd’s CEO: Re/Insurance Industry Must Evolve Faster Than Ever
The insurance and reinsurance sectors face an expanding risk landscape, driven by critical challenges such as climate change and cyber threats
Global Reinsurance Market Trends. Composite’s ROE Reaches Five-Year High
In 2024, reinsurance premium rates increased, interest rates remained high, and capital markets performed well. The composite achieved its highest ROE in five years
Reinsurers Prepare for Rate Hikes Amid Rising U.S. Casualty Loss Costs
Reinsurers are likely to push for double-digit increases in U.S. casualty premium rates during the January 2025 renewals. This move aims to address higher loss costs
Global Reinsurers Brace for Mixed Reinsurance Pricing Outlook in 2025
More than 50% of the 81 respondents think global reinsurers will raise prices in January reinsurance 2025 renewals, continuing recent increases driven by high claims inflation
Hurricane Milton’s Impact Limited for U.S. P&C Insurers and Global Reinsurers
Hurricane Milton is not likely to affect credit for rated property and casualty insurers and global reinsurers given very strong capital levels
Hurricane Milton Economic and Insurance Loss Forecast: Impact on Re/Insurers
Economic and insured losses from Hurricane Milton remain uncertain, Milton is the second major storm to hit the U.S. within two weeks, following Hurricane Helene
Reinsurers Will Increase in U.S. Casualty Premium Rates in 2025
Reinsurers will push for double-digit increases in U.S. casualty premium rates when policies come up for renewal in January 2025 to keep up with higher loss costs
Global Brokers Called on Re/Insurance Industry to Support Ukraine’s Resilience
Since the war began, global reinsurers have bundled risks from Ukraine, Russia, and Belarus, excluding them from reinsurance contracts. This has reduced available capital and hindered economic stability
Reinsurance Market Outlook for 2026: De-risking, Pricing & New Conditions
The positive reinsurance market outlook comes from de-risking as much as pricing with changes in terms and conditions, rising attachment points and tightening of wording
ILS Market & Alternative Reinsurance Capital: Poised for Continued Growth
ILS market remains a significant capital source for reinsurers in 2024. Alternative capital estemated at $110 bn, with the catastrophe bond market growing to $45 bn
2024 Global Reinsurer Traditional Capital: Capacity at Peak Levels
In 2024, global reinsurer capital, including both alternative and traditional sources, has reached peak levels. Reinsurer capital stood at $695 bn as of mid-2024, marking a $25 bn increase
Reinsurance Industry at a Crossroads: New Risks & Opportunities in 2025
While the reinsurance industry faces challenges, such as geopolitical and economic uncertainty, its biggest threat is losing relevance. 2024 has been another year of volatility
Rising Demand for Property Re/Insurance Amid Increasing Risks & Costs
Higher property values, urbanization, and increased repair costs are likely to drive demand for property re/insurance, particularly in regions facing heightened natural catastrophe
H1 2024 Global Reinsurance Market Highlights: Reinsurer Revenue & Capital Growth
Global reinsurance market delivered strong results in 2024 with further improvement in underwriting profitability, exceptional ROEs and a continued building of capital
2024 Reinsurance Renewals Come Amid Growing Reinsurer Appetite
The mid-year reinsurance renewals occurred against a continued increase in reinsurer appetite as overall reinsurance capacity grew
Global Reinsurance Capital: New Peak Reached in 2024
Aon estimates that global reinsurer capital rose by $25 bn to a new high of $695 bn over the three months to March 31, 2024
Top Tips for 2024 Reinsurance Market Renewals
Mid-year reinsurance renewals have further consolidated the positive trends at 1/1 and 4/1, setting the stage for a more competitive reinsurance market in 2025
Florida’s Reinsurance Market Saw a Pause in 2024
Florida’s reinsurance market, after three years of significant rate hikes, saw a pause in 2024. Reinsurers viewed the outcome positively
Primary & Secondary ILS Market Quarterly Review
Insurance-Linked Securities Overview. Insurers and reinsurers leveraged alternative capital in 2023 more than any year in the history of the (re)insurance market
Reinsurance Renewals at 2025 by Regions: Capacity & Trends
Reinsurance renewals conditions since 1/1 have continued to move in favor of reinsurance buyers. At the start of last year, property catastrophe capacity was constrained
Global Reinsurance Capital & Catastrophe Bond Market Dynamics
Global Reinsurance market conditions since 1/1 have continued to move in favor of reinsurance buyers. Reinsurance renewals at April 1 consolidated the progress made at 1/1
Global Reinsurance Market Report: Reinsurers’ Capital & Profitability
Global reinsurance groups reported a significant improvement in underwriting profitability and ROEs in 2023
Underwriting Margins for Reinsurers Will Reach Peak in 2024
The underwriting margins for reinsurers are anticipated to reach their peak in 2024, driven by significant price increases and stricter terms and conditions
2024 Global Reinsurance Rate for Property Catastrophe Forecasts
Reinsurance rate increases for property catastrophe business are likely to slow to below 10% on average when contracts are renewed in January 2024
Reinsurance Rates Will Continue to Rise in 2024 Year
Global reinsurance rate increases for property catastrophe business are likely to slow to below 10% on average when contracts
2024 Reinsurance Renewals: Reinsurers Increasing Appetite for Catastrophe Coverage
Ahead of the January 2024 reinsurance renewals, reinsurers’ overall appetite for US regional property catastrophe coverage remains healthy
War Exclusions in Cyber Insurance are Centre Stage as Re/Insurers
Whilst there have been no cyber attacks of comparable scale since the invasion of Ukraine, the scope of cyber insurance, and the war exclusions issue specifically
Fitch Ratings Revised Global Reinsurance Sector Forecasts for 2024
Fitch revised global reinsurance sector outlook to ‘improving’ from ‘neutral’ to reflect the sector’s strengthening performance into 2024
Global Non-Life Insurance Industry Adjustes Rapidly to Higher Interest Rate
The global non-life insurance industry is adjusting rapidly to the new higher interest rate era ushered in by the most intense monetary policy tightening since the 1980s
Global Reinsurers Underwriting & Investments Review
Global reinsurance groups are cutting back on the cover they provide against medium-sized natural catastrophe risks due to investor pressure after several years
3 Ways How Re/Insurers Can Accelerate Net Zero & Decarbonization
The emerging impacts of climate change are increasingly felt across the re/insurance industry, with much uncertainty ahead. But the industry now has a chance to transform
Global Natural Disasters Figures: $100 bn Insured Losses
2024 is a continuation of the recent run of years with high losses from natural disaster. While the overall losses of $120bn in 2023 were lower than those in 2022
Reinsurance Rates for U.S. & Florida NatCat Policies: Renewal Trends
U.S. property catastrophe reinsurance rates rose by as much as 50% at a key July renewal date, with states such as California and Florida increasingly hit
Reinsurance Market is a Critical Part of Florida’s Insurance System
Reinsurance market — a critical piece of Florida’s property-insurance system — is improving as Florida insurers try to bounce back
Discover how a secondary reinsurance market could improve capital efficiency, lower WACC, boost underwriting flexibility and support more efficient pricing
Fitch estimates Winter Storm Fern insured losses at $4-7 bn. Losses hit earnings, not capital, with P&C insurers absorbing most claims and no rating downgrades
The 2025 Atlantic season had no US hurricane landfalls yet delivered Category 5 storms, inland flooding, and losses, highlighting rising intensity and protection gaps
Global reinsurance pricing fell more than expected at Jan. 1, 2026 renewals, with abundant capital, weak catastrophe support, and easing terms