Home›Insurance›Reinsurance›Reinsurance market to see further price softening into…

Reinsurance market to see further price softening into 2027

Fitch expects the 2026 renewals to have shifted more business to a buyers’ market, with property rates declining by double digits before additional pricing easing at 2027 renewals.

Reported · Written up by our desk · Reinsurance

The global reinsurance market is in a period of strong capital but still faces an imbalance, with supply continuing to outpace reinsurance demand, according to Fitch via Insurance Journal.

Fitch expects market pricing to soften further at the 2027 renewals and to come with increasingly flexible terms for cedants, even as reinsurers remain disciplined about where they deploy capital.

For the 2026 renewals, the shift toward a buyers’ market was most pronounced in property risk, where rates declined by double digits and terms and conditions loosened only marginally, with attachment points and retentions largely holding.

Looking ahead, Fitch forecasts that 2027 combined ratios will deteriorate as price erosion continues, while easing policy terms could increase earnings volatility. The analysis also notes that competition in property and specialty lines is expected to remain highly intense, becoming less price-led and more focused on terms and conditions after large declines over the past two years.

More like this

Sources