Amwins, an independent wholesale distributor of specialty insurance products active across global reinsurance markets, offers an updated perspective on how conditions are shaping for the year ahead.
According to Amwins, the reinsurance market is gradually moving toward steadier conditions following several years of sharp rate reductions of 30% to 40%. Any further softening is now expected to be more moderate, likely in the range of 10% to 15% percent, provided the year does not experience significant global loss events.
The availability of capital across traditional and alternative sources is allowing reinsurers to offer larger participations and more adaptable structures, particularly in higher layers with limited catastrophe exposure, which is helping to streamline placements for brokers and cedants.
The company notes that underwriting conditions have become somewhat less restrictive, though reinsurers continue to apply caution to exposures involving severe storms, wildfire activity and flood risk. Selective deductibles remain common for wildfire and water damage, and valuation practices are receiving closer scrutiny.
Markets are paying increasing attention to how replacement cost and actual cash value are applied to individual components of insured property. Outside the property segment, reinsurers continue to adopt a careful stance toward exposures that produce frequent losses, and Amwins stresses the importance of clear data and strong documentation when seeking advantageous terms.
Competition has intensified as a result of new entrants, including MGAs and fronting carriers that operate with lower capital expenses. Amwins observes that insureds and brokers now hold greater leverage than they did during the earlier hard-market period.
In regions where admitted insurers have reduced writings in response to repeated severe events, E&S carriers and reinsurance-supported structures are stepping forward to take on additional business. This underscores the ongoing relevance of both treaty and facultative solutions as tools for maintaining stability and supporting growth.
Regulatory developments have not yet produced major changes in reinsurance structures, although Amwins notes that reinsurers are paying close attention to updated solvency and capital requirements.
In the United States, social inflation and litigation funding continue to influence underlying carriers, but these pressures have not yet prompted substantial changes to reinsurance design. Economic factors such as rising labor and material costs continue to affect the severity of claims, and Amwins acknowledges that any weakening of investment results could prompt reinsurers to reassess pricing or capacity decisions.
Awareness of emerging risks continues to grow, particularly in cyber, terrorism and climate-related areas. Amwins reports rising demand for cyber and terrorism coverage across both established and developing markets. Flood remains a central concern as shifting weather patterns alter historical expectations. Increasingly frequent severe storms and wildfire events are influencing portfolio strategies and prompting reinsurers to refine modelling techniques and diversify approaches.
Amwins highlights the importance of a deliberate and informed strategy ahead of renewals. Thoughtful adjustments to structure, careful placement planning and a clear understanding of which markets are deploying net capacity compared with treaty capacity can improve pricing and efficiency. Thorough documentation and coordinated communication continue to be essential when presenting risks, particularly those that are engineered or data-intensive.
From the London market perspective, Amwins reports that the first half of 2025 presented more difficulty than expected. Rates fell faster than many London reinsurers anticipated, placing pressure on participants that typically adjust more slowly.
A continued focus on higher-margin direct business reduced the amount of reinsurance capacity available early in the year. Direct insurers in both London and the US also reduced rates aggressively to retain accounts, creating fewer openings for new placements.
Cedants often opted to retain smaller shares of business rather than cede them, reducing facultative activity. As the year progressed, Amwins observed a more practical tone. Direct insurers increasingly recognised the value of reinsurance support for retention and growth, and primary layers extended to higher limits.
This shift created opportunities for reinsurers to support broader layers or for cedants to apply a “write and buy” strategy to manage their net positions. With limited hurricane activity through the latter part of the year, Amwins anticipates a steadier finish to 2025 and a more balanced start to the 2026 renewal period in London’s facultative space.
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