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Record reinsurance capital leaves US catastrophe coverage gaps
An estimated 84% of US earthquake exposure remains uninsured, according to a Moody’s analysis cited in the report.
Catastrophe reinsurance capacity has grown and pricing has eased, but a large share of risk in the United States still lacks coverage, highlighting a persistent gap between available capital and what reaches businesses and households, Insurance Business reports.
Moody’s analysis found insurance covered less than half of global catastrophe losses in each year from 2015 through 2025, with 57.8% of losses uninsured over the period, and about 84% of US earthquake exposure remains uninsured.
The report points to record reinsurer capital of $785 billion at the end of 2025, up almost 10% from a year earlier, and notes that at the July 2026 renewals global property catastrophe pricing fell further, with Guy Carpenter’s rate-on-line index shifting from a 12% decline at January 1 to a 16% decline by mid-year.
Insurers are exploring options beyond traditional protection, including parametric solutions and sidecars, as more capacity supports broader coverage terms, according to the same report.