Despite navigating an evolving risk landscape, the global specialty insurance and reinsurance market is healthy, supported by strong fundamentals, such as reinsurer consensus on price adequacy, increased retained earnings, growth in dedicated reinsurer capital and continued appetite for expansion, according to James Boyce, CEO of Global Specialties, Guy Carpenter.
He continued, “The global specialty insurance and reinsurance market is navigating an evolving risk landscape and complex losses, due primarily to shifting geopolitical factors, economic inflation and claims dynamics.
“Despite this, the market is healthy, supported by strong fundamentals, such as reinsurer consensus on price adequacy, increased retained earnings, growth in dedicated reinsurer capital and continued appetite for expansion.”
Boyce also suggested that new entrants are further diversifying capital sources and greater competition.
“Looking ahead, we predict a likely increase in demand for capacity with a softening reinsurance and retro market,” he added.
As per Boyce, clients are expected to seek greater collaboration and alignment with their reinsurance partners, optimising risk transfer strategies through improved pricing, terms and conditions.
Meanwhile, reinsurers are expected to recalibrate to adapt to the changing risk landscape and market conditions, balancing discipline with pragmatism.
“There is a sustained appetite for growth, and we anticipate those reinsurers who are willing to offer flexibility, product differentiation, and innovation are most likely to prevail,” Boyce explained.
He concluded, “As the Specialty reinsurance market adapts, staying agile and responsive will be essential. Our focus remains on understanding our clients’ goals and providing the insights needed to develop a tailored strategy and secure the right coverage at the right price.
“Guy Carpenter’s market-leading data and analytics enable our clients to optimise their choice of partners and take advantage of the abundant capacity in this market.”
In related news, Dean Klisura, President and CEO of Guy Carpenter, recently 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.
“Preparedness on exposures, the potential for inflation, balance sheet resilience and sustainable growth are key areas of focus,” Klisura said.
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