Record levels of reinsurance capital and strong reinsurer profits are driving increasing reinsurer risk appetites and softening prices during the midyear renewals, according to reinsurance brokers in their respective market reports.
“In the traditional property market, abundant reinsurer capacity continues to drive a progressively competitive pricing environment,” said Guy Carpenter, the reinsurance brokerage business of Marsh. “Risk-adjusted decreases have deepened since January 1, 2026, with the global property catastrophe rate-on-line index down -16%.”
While specialty reinsurance renewals continued a similar softening trend, Guy Carpenter said, significant loss development from the 2024 Francis Scott Key Bridge collapse in Baltimore is expected to hit 2027 marine renewals.
“In April 2026, the total loss reserve for the bridge collapse increased from $1.5 billion to $2.8 billion,” said Guy Carpenter in its report titled “July 2026 – Reinsurance Renewal Report.” (Editor’s note: the full renewal report is available on the broker’s Renewal Resource Center.)
The Guy Carpenter report noted that most of the claims from the Baltimore bridge collapse will be borne by the reinsurance and retrocession markets. “As the latest reserve increase occurred after 90% of impacted programs were placed in 2026, pricing implications will not be seen until the 2027 renewal season.”
“In the current market conditions, cedents have secured competitive pricing and terms on their reinsurance programs, but many are also exploring alternative options, such as parametric solutions and sidecars, as ways to complement their traditional protection,” said Dean Klisura, president and CEO at Guy Carpenter, in a statement accompanying the report. “We expect this trend to continue as we move through the remainder of the year.”
“Property catastrophe reinsurance renewals at June 1 and July 1 were productive for insurers, with double-digit pricing reductions and improving terms for most placements,” said Aon in its report titled “Reinsurance Market Dynamics Midyear 2026 Renewal Report.”
“In this market, buyers have been able to achieve outcomes better tailored to their needs across most lines,” said Gallagher Re’s First View report titled “A Moment for Creativity – July 2026.”
“The market has been trending in this direction throughout 2026, so these themes are not new. What distinguished the July 1 renewal is the speed at which these conditions advanced,” said Gallagher.
“Reinsurer appetite continued to increase and broaden, with Florida experiencing one of the most positive renewals in a decade. Insurers in Latin America and Australia/New Zealand also benefited from fewer constraints and ample capacity for placements,” Aon confirmed.