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Property cat reinsurance rates expected to keep softening in 2027
Fitch projects terms and conditions will loosen further in 2027, including higher limits and broader event definitions.
Property catastrophe reinsurance rates are expected to continue softening in 2027, Fitch Ratings said, assuming there is no large-scale hurricane or other major loss event in the second half of 2026, Reinsurance News reported.
After substantial rate reductions in January 2026, property cat pricing saw further significant declines during the mid-year 2026 renewals, with lower layers flat to down in the single digits, and higher, more remote loss-free layers posting the largest double-digit rate declines on increased capacity from traditional insurers and alternative capital providers.
Fitch also expects reinsurance terms to loosen further in 2027 as competition intensifies, with higher limits, broader event definitions, extended hours clauses, and expanded aggregate covers. For the US property market, pricing for risk and catastrophe loss-free business declined by up to 25% at the mid-year 2026 renewals versus a 20% decline in January 2026, while US loss-hit business fell by up to 5%.
Florida pricing was also reported down as much as 25% at the renewals, with strong supply outpacing higher demand. Reinsurance News added that after three strong underwriting years, including zero US hurricane landfalls in 2025, insurers used added capital to buy extra limits and other protections, while increased demand in Florida was linked to new startup insurers and greater depopulation from Citizens Property Insurance Corporation.