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Reinsurers expect stable reinsurance terms through 2027 renewals

Moody’s expects January 1, 2027 renewals to keep terms largely unchanged on average, but notes case by case adjustments driven by cedent profiles and catastrophe activity.

Reported · Written up by our desk · Reinsurance

Reinsurance News reports that Moody’s analysts expect reinsurance terms and conditions to largely hold heading into January 1, 2027 renewals, with underwriting discipline remaining stable through 2026 even as reinsurers increase exposure to natural catastrophe risk.

The ratings firm said that after reinsurers tightened policy terms and raised treaty attachment points in 2023, they have largely avoided concessions, helping drive strong financial results despite high catastrophe claims. Moody’s expects that firm stance to continue, with “little movement” in average terms between 2023 and 2026, while changes still occur on a case by case basis.

Moody’s also highlighted that underlying conditions vary by cedent profile. Larger, more sophisticated primary carriers, using their bargaining power and advanced secondary peril modelling, have secured minor concessions such as selectively lower attachment points and tailored aggregate structures.

Finally, Moody’s said what happens next will depend on catastrophe activity for the rest of the year, noting that the North Atlantic hurricane season is still ongoing despite relatively moderate loss activity earlier in 2026. The outlet added that some smaller insurance companies have seen attachment points go up, reflecting how reinsurers manage their broader portfolios.

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