Soft reinsurance market conditions persist, with strong capacity and competition supporting favourable pricing and terms for cedents at 1 July renewals, according to Guy Carpenter.

In property lines, catastrophe bond issuance has reached record levels, with more than US$61bn of limit outstanding in the first half of 2026, while parametric solutions are gaining traction for secondary perils.

Pricing remains under pressure, with the property catastrophe rate on line index declining to -16% at mid-year from -12% at the start of the year.

Dean Klisura, president and CEO of Guy Carpenter, said: “In the current market conditions, cedents have secured competitive pricing and terms on their reinsurance programmes, but many are also exploring alternative options, such as parametric solutions and sidecars, as ways to complement their traditional protection. We expect this trend to continue as we move through the remainder of the year.

“In casualty lines, mid-year renewals continue to demonstrate nuanced outcomes based on loss experience and evolving market structures. The specialty lines market has been more impacted by volatile geopolitical tensions, which have spurred product development and greater innovation."

Looking ahead, recent events are expected to influence future renewals, with the recent earthquakes in Venezuela expected to highlight a significant insurance protection gap, particularly in residential property.

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