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Reinsurance buyers see property pricing declines into 2027
Moody's said about a quarter of survey respondents expect lower attachment points in 2027, while more than a quarter plan to buy additional reinsurance coverage.
Reinsurance buyers expect property prices to keep falling into 2027, helped by abundant traditional reinsurance capacity and fewer severe catastrophe losses, according to Moody’s Ratings. Moody’s said its annual survey found market conditions remain favorable for reinsurance buyers heading into 2027. Within property, terms and conditions were relatively stable in 2026, but roughly a quarter of respondents expect declines in attachment points, a shift that could indicate some easing in 2027. The report also pointed to changing demand, with buyers increasingly seeking to expand coverage, including more interest in tail protection and aggregate covers. Casualty pricing expectations were more mixed by region, with US insurers generally anticipating price increases tied to higher loss costs driven by litigation and settlement costs, while non-US insurers increasingly expect price declines as property capacity spills over. Moody’s added that catastrophe bonds and collateralised reinsurance are the most attractive alternative capital options among respondents, while interest in cyber reinsurance remains healthy. Most respondents expect to maintain current reinsurance protection levels, and more than a quarter plan to purchase additional coverage, the outlet said.