Kathmandu. The ongoing slowdown in the property reinsurance sector is expected to continue in 2027 as well.
A recent survey by Moody’s shows this. As a result, most of the world’s reinsurance companies expect further price cuts in the property market next year. Eighty-six percent of those surveyed expect property reinsurance rates to fall again in 2027. This is a stronger consensus than the 74 percent who expect a decline in 2026.
Most estimates range from 7.5 to 15 percent. However, a significant portion of buyers are prepared for a decline of more than 15 percent if the situation remains unchanged by the time of renewal in January.
A new survey by Monte Carlo Rendez-Vue shows that the market is full of traditional and alternative capital. Although the current U.S. government led by Donald Trump has already seen double-digit contraction this year, competition is strong and losses from major disasters are still limited. These factors have kept prices under pressure. While reinsurance companies are earning attractive risk-adjusted returns on the business they receive.
Reinsurance buyers aren’t just waiting for cheaper rates. Many are interested in expanding coverage. They’re looking for higher protection, especially to help address the rising incidence of disasters, such as severe storms, floods, and wildfires.
Services and terms remained largely stable until 2026, but nearly a quarter of those surveyed expect the ‘engagement point’ to be comfortable in the coming year. This could be the first time such a relaxation has been seen since the hard-market reset of the recent cycle. The situation in crash lines is mixed.
Insurers in the U.S. are generally expecting more rate hikes due to rising litigation and contract costs. Meanwhile, buyers outside the U.S. are anticipating a decline due to the removal of excess capacity from the property market.
Moody’s itself has warned that a major catastrophe ahead of the January 2027 renewal could change expectations quickly. For now, a survey of buyers indicates that the softening will continue as capital supply outstrips demand. – Agency
