Dean Klisura, President and CEO of Guy Carpenter, has urged insurers to begin optimising their reinsurance programmes ahead of the 2026 renewals, focusing on expanded coverage, product innovation, broader peril protection, and earnings stability.
He continued, “But as we look ahead to 2026 renewals, now is the time for insurance companies to optimise their reinsurance structures in terms of expanded coverage, product, peril and earnings protection.
“Traditional business models and value chains are under growing threat from artificial intelligence and other technologically enabled disruptions.
“Those traditional models tend to have legacy process inefficiencies and information asymmetry, increasing transaction costs. Nearly all cedants are thinking about ways to find efficiency in their operating models and driving down expense ratios.”
Klisura also pointed out that stabilising interest rates in many markets, alongside lower capital costs, could create a more favourable environment for M&A activity.
“Guy Carpenter’s knowledge of the market positions us well to advise clients on both M&A and capital-raising strategies,” he added.
Looking ahead, Klisura stressed that insurers cannot rely on the status quo, noting, “As history tells us, changing risk landscapes ensure that ‘business as usual’ is not a viable option for success over the longer term. By pushing boundaries and embracing technology, our industry can transcend transactional coverage and continue to be a vital force in stabilising an uncertain world.”
The Guy Carpenter CEO also reflected on the challenges facing the reinsurance sector, which is being shaped by both opportunity and risk.
“On the one hand, there continues to be abundant capital in the market and reinsurers have achieved strong results. On the other, there is heightened volatility, rates are softening, and reinsurers are being forced to evolve within an expanding universe of risks,” he said.
Recent catastrophe losses underscore this point. “This year, particularly with the Los Angeles wildfires, Cyclone Alfred in Australia and the Myanmar/Thailand earthquake, we have seen the industry absorb the impact of losses as reinsurers have generally maintained their original growth and profit expectations for 2025,” Klisura noted.
He concluded by highlighting the opportunities ahead: “The current landscape presents an opportunity for innovation, from embedding reinsurance into capital markets in real time to shrinking the protection gap and strengthening resilience.
“The world today is experiencing increased volatility, and insurance company CEOs and their leadership teams are continually assessing how this volatility affects their capital strategies. Guy Carpenter is keenly aware of these challenges – and working hard to help clients stay ahead of them.”
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