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Reinsurers urged to use soft market to prepare for next hard cycle

Oxbow Partners warns that defensive “cycle management” focused on cutting exposure can hurt cross cycle performance, while arguing top reinsurers grow across the full cycle.

Reported · Written up by our desk · Reinsurance

Reinsurance News reports that Oxbow Partners is urging reinsurers to actively use a soft pricing environment to set up for the next hard market, rather than simply pulling back growth to protect the downside.

According to Oxbow research, the strongest reinsurance performers seek growth throughout the cycle, with cross cycle outperformance coming from how companies behave during soft-market phases, not just during peak pricing periods.

Reinsurance News also highlights that Oxbow points to a changing market after years of exceptional profitability and strong capital buffers from 2023 to 2025, as costs of competing rise due to technology and data investments and as traditional and ILS capital continues to flow into the sector.

Oxbow analysts said reinsurers face additional pressure from an ageing demographic profile and emphasized maintaining relevance through transformation, including clarifying a competitive “edge,” communicating consistently to stakeholders, and using AI to scale the business efficiently rather than limiting efforts to administrative cost cuts.

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