1 January 2026 renewals: reinsurance rates down

According to a recent report by Howden, most reinsurance lines of business experienced rate declines at the 1 January 2026 renewals. This correction has brought pricing back to levels seen four years ago, despite persistently high insurance rates and continued tight market conditions.

The downward trend is attributed to strong retained earnings, robust balance sheets, record issuance of insurance-linked securities (ILS), and intense competition among reinsurers.

In the property damage segment, rates declined by 14.7%, compared with an 8% decrease in 2025, marking the sharpest reduction since 2014.