Global reinsurance broker and ICMIF Supporting Member Gallagher Re says improving market conditions are creating new opportunities for insurers to optimise their reinsurance programmes, with greater flexibility on both pricing and programme design.
In its latest First View report, published around the 1 July 2026 renewals, Gallagher Re says strong reinsurer performance, record levels of capital and growing competition are enabling insurers to secure better outcomes across many classes and geographies.
The report notes that while rate reductions continued at the mid-year renewals, the more significant development was the ability of cedants to reshape their reinsurance programmes to enhance resilience and support stronger long-term portfolio performance.
Dedicated global reinsurance capital reached a record USD 648 billion at the end of 2025, an 11% increase year on year, according to Gallagher Re. At the same time, demand for reinsurance has remained comparatively stable, creating a widening gap between supply and demand that has intensified competition among reinsurers.
Alternative capital also continues to play an increasingly important role. Gallagher Re reports that non-life alternative capital grew by 18% during 2025 to a record USD 135 billion, with investor appetite extending beyond natural catastrophe business into casualty and other lines. This growing availability of capital is providing insurers with greater flexibility to optimise their risk transfer strategies.
As market conditions continue to improve, Gallagher Re says insurers are increasingly exploring more creative programme structures, including multi-year and multi-line arrangements, aggregate covers and blended solutions designed to better manage volatility and capital efficiency.
The report highlights differing trends across business lines. Property reinsurance experienced the strongest levels of competition, with abundant capacity supporting both pricing improvements and greater structural innovation. Casualty renewals remained broadly stable, with the best-performing portfolios achieving selective improvements while underwriting discipline continued. In specialty lines, capacity remained strong although recent losses have resulted in greater scrutiny in some areas.
Tom Wakefield, Global CEO of Gallagher Re, said that while the favourable direction of the market has been evident throughout 2026, “what distinguished the July 1 renewal is the speed at which these conditions advanced.”
Looking ahead, Gallagher Re believes the current environment presents insurers with an opportunity to move beyond pricing discussions and focus on building more resilient, future-ready reinsurance programmes through tailored and innovative risk transfer solutions.
