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Reinsurers look to specialty lines as property cat pricing softens
Berenberg said reinsurers expect continued softening, with US property cat still attractive because carriers can often reach payback within about two years after pricing reacts to loss events.
Reinsurance News, citing comments from Berenberg after the 2026 Monte Carlo Rendez-Vous de Septembre, said reinsurers are shifting growth priorities away from core catastrophe markets toward high-barrier specialty lines as property cat rates continue to soften.
Berenberg reported an ongoing trend of softer pricing and more flexibility in terms and conditions, while it said overall pricing remains risk-adequate. The bank also highlighted reinsurers’ focus on growth appetite and capacity, including an interest in US property cat even as the market absorbs the steepest rate declines.
According to the commentary, US property cat remains attractive because pricing typically reacts quickly to loss events, enabling carriers to achieve payback within two years. Outside traditional catastrophe lines, reinsurers are looking at specialty areas such as construction and engineering risks, credit and surety, and structured solutions that often use multi-year, multiline covers.
Berenberg also noted that while data centers could be a growth area, the reinsurers it met are taking a cautious approach due to limited historical data and risks such as aggregation risk. It added that if rates fall below levels needed to adequately compensate for risk, reinsurers would reduce capacity and redirect freed-up capital, including toward life and health reinsurance.