Reinsurance Pricing Expected to Soften
Despite recent large catastrophe events, such as Hurricanes Helene and Milton, and the Los Angeles wildfires, reinsurance sector capacity continues to grow, according to J.P. Morgan.
Reinsurance prices have been declining over the past two years and we expect them to drop further with 1/1/26 renewals given limited cat activity during hurricane season (thus far),
Property catastrophe prices declined 5-15% with January 2025 renewals, and an even sharper drop is anticipated with 1/1/26 renewals, barring significant cat activity in the next few months.
- Hurricanes Helene and Milton
- Los Angeles wildfires
Author's summary: Reinsurance prices to drop further.