Market Reports | December 30, 2025
State of the Global Insurance Market: Q4 2025Explore the latest announcements from reinsurers on rate cuts and increased capacity – and what insights they provide into your insurance market outlook for 2026.
The January treaty reinsurance renewals are one of the few moments each year when the market shows its hand in public: which direction is pricing moving, where is capacity growing, and which terms are sticking.
In 2026, the message is clear. Conditions are continuing to soften, and buyers have more leverage.
The catch is that “cheaper” doesn’t automatically mean “better”. Working with a specialist London market broker like Costero Brokers helps you turn favourable market conditions into optimal outcomes: the right structure, the right wording, and the right capacity behind it.
Understanding the January reinsurance renewals
January 1st is the biggest annual renewal date in reinsurance. Almost all global reinsurance contracts will renew during this period, across all classes of business and specialty lines.
Treaty reinsurance is the primary tool used by insurance companies to provide them with portfolio-level protection (both proportional and non-proportional) against earnings volatility. It helps them guard against and reduce the impact of market-wide events, and when speaking about Property D&F, this will usually mean large CAT events such as hurricanes.
Key insights from the 2026 treaty market.
The renewal reports and market commentary that come out in early January shape expectations for the year ahead, and the themes this year are:
- Rates are down significantly across most major specialty lines.
- Capacity is increasing through traditional sources, private equity, and soft-follow.
- Attachment/retention discipline is currently stable and is not yet seeing any significant change.
- Coverages being widened through flexibility on sublimits or extensions.
- (Re)insurers want growth, and willing to trade aggressively or enter new areas to achieve this.
This is exactly the intelligence you need if you’re deciding whether to buy a higher limit, expand your coverages, restructure your retentions or build a facility.
Why London matters more in 2026: flexibility and bespoke solutions
All this creates a tremendous opportunity around the London market in 2026. There has never been more capacity in London, and the market is more flexible than ever.
This is reflected not just in price, but in how deals are structured. The flexibility allows for more movement in deductibles, limits, conditions and coverages.
Carriers are having to compete aggressively just to protect their own positions, with many of them also offering new products to achieve growth. Sophisticated buyers can benefit from the market’s willingness to offer unique tailor-made solutions.
Accelerating due to the market conditions, is the growth of ‘soft follow capacity’; automatic capacity that will follow the lead underwriter’s terms with minimal to zero additional negotiation. This speeds up the placement process and maintains the competitive tension between existing and new carriers.
How Costero Brokers can help you in the 2026 insurance market
If you’re starting to see the 2026 market conditions as an opportunity, you’re not wrong. Costero Brokers can help you to:
- Translate the softening market not just into lower premiums but into a better programme for you and your clients.
- Access London and Lloyd’s capacity efficiently, especially where you need bespoke wordings, specialist appetites, or cross-class solutions.
- Create facilities that fit your requirements (bulking, non-bulking, line slips or binders).
- Present your risk so you’re treated as a “preferred client” and get the most out of the London market.
The overarching theme is that in 2026, pricing is moving in your favour. The best outcomes will go to buyers who show up prepared, use London intelligently, and treat structure as a strategic lever rather than a paperwork exercise. In all these areas, Costero Brokers can make all the difference to your success.
Take your next step in the 2026 insurance market
If you want to talk through what the 2026 treaty renewals mean for your business, whether that’s lowering cost, buying more cover, building a facility, or launching a new product, get in touch with Costero Brokers and speak to our team.
We’ll help you turn today’s market conditions into capacity and coverage that makes sense now, and into the future.
Contact our experts at Costero Brokers.
