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Reinsurance pricing set to fall around 10% by Jan 1, 2027

Aon said global reinsurer capital rose by $15 billion to $800 billion in the six months through June 30, supporting expectations of lower property reinsurance rates.

Reported · Written up by our desk · Reinsurance

Aon executives said record capital levels in reinsurance and a broader insurance-linked securities investor base are creating a buyers market, with property reinsurance pricing likely to fall by about 10% at the January 1, 2027 renewal.

Aon estimated global reinsurer capital increased by $15 billion to $800 billion over the six months through June 30, with both traditional equity and third-party capital at record levels, and executives said this does not always guarantee better outcomes, because strategic use of capital matters.

Aon’s senior reinsurance executives also pointed to property return metrics and catastrophe exposure, saying pricing remains roughly 30% above the index at the peak of the prior soft market, while the five-year average annual cat loss amount is about $114 billion and year-to-date cat loss totals are around $75 billion.

They said clients will be focused on how any resulting savings can be used, including frequency protection, adjusting retentions, or strengthening profitable year-end results. The executives also described the higher capacity and volatility in the environment as a driver of reinsurance innovation.

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