Kathmandu. Reinsurance rates decreased on January 1, 2026. With most lines of reinsurance declining, renewal, and risk-adjusted rates have returned to levels seen almost 4 years ago.
According to Howden’s 2026 renewal report, the decline comes despite strong balance sheets of reinsurers, high inflection points and tighter terms, supported by strong capacity and intense competition. Despite the year of widespread damage, including the Los Angeles wildfires, market conditions were doing well globally and in the Asia-Pacific region, Howden said.
Strong earnings and good returns in 2025 have encouraged reinsurance companies to deploy more capital in 2026 renewals. This led to lower rates on most of the larger lines.
The average risk-adjusted rates for global property catastrophe reinsurance fell by 14.7 percent. That’s the biggest annual decline since 2014.
Competitive conditions in the Asia Pacific region allowed cedents to receive further cuts. The risk-adjusted rate for loss-free non-proportional programs has typically dropped between 10 percent and 20 percent as of Jan. 1.
According to Howden, shoppers in the region have benefited from the abundant supply and have been able to purchase more coverage at a lower price. While the market remains disciplined, higher engagements and stricter conditions are expected to continue into 2026.
