{"id":6270,"date":"2025-07-01T07:00:12","date_gmt":"2025-07-01T07:00:12","guid":{"rendered":"http:\/\/calebdewey.com\/?p=6270"},"modified":"2025-07-01T07:24:47","modified_gmt":"2025-07-01T07:24:47","slug":"supply-demand-balance-shifts-back-towards-buyers-at-mid-year-reinsurance-renewals-gallagher-re","status":"publish","type":"post","link":"http:\/\/calebdewey.com\/index.php\/2025\/07\/01\/supply-demand-balance-shifts-back-towards-buyers-at-mid-year-reinsurance-renewals-gallagher-re\/","title":{"rendered":"Supply & demand balance shifts back towards buyers at mid-year reinsurance renewals: Gallagher Re"},"content":{"rendered":"

Buyers of protection had the opportunity to secure improvements to the structure of their property and specialty reinsurance programmes at the July 1st, 2025, reinsurance renewals, a period in which Gallagher Re notes a shift in the balance of supply and demand back towards reinsurance buyers.<\/p>\n

\"gallagher-re-logo\"The reinsurance broker’s 1st View 2025 renewals report examines the key mid-year renewal period for many markets, notably the US, Latin America, Australia, and New Zealand.<\/p>\n

Compared to recent years, the July 2025 renewals were “more competitive” as sellers continued to look for profitable growth opportunities. A combination of plentiful and underlying pricing improvements, according to Gallagher Re, supported buyers to broadly secure risk-adjusted rate reductions for property treaties, and also hold pricing mostly flat in casualty lines of business.<\/p>\n

During Q1 2025, global property catastrophe losses spiked as a result of the devastating California wildfires, but Gallagher Re’s report reveals that, so far, losses have been manageable and outside particular loss-hit portfolios, actually had limited impact on renewal outcomes.<\/p>\n

Commenting on the property market at the July 1st renewals, Gallagher Re said: “After several years in which the share of incurred property cat losses has skewed to primary insurers, market conditions were favorable to better address buyer needs at this renewal. Reinsurers were looking to balance their appetite for growth with their objective of protecting profitability.”<\/p>\n

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This led to risk-adjusted rate reductions around 10-15% on average at July 1st 2025 when compared with the previous year, reflecting further market softening from the highs of 2023.<\/p>\n

“While this reflects the broader outcome, individual renewals remained highly dependent on their own characteristics, continuing the trend of more diverse results at a granular level. This calculation also reflects structural adjustments such as shifts in attachment points, and where quantifiable, improvements in terms and conditions,” added Gallagher Re.<\/p>\n

As the reinsurance broker’s report highlights, Florida renewals are a key focus at mid-year, and after re\/insurers retreated somewhat from the region in the past few years, 2025 saw a return of capacity to the state, driven by reforms.<\/p>\n

In the casualty reinsurance space, Gallagher Re notes a clear market divide between cedants that had taken proactive steps with underwriting strategies and claims management practices, and those unable to show how they had navigated the performance issues. For the former group, more favourable outcomes were secured at the mid-year, while the latter cohort reportedly found the renewal a lot more challenging.<\/p>\n

“That puts a premium on not only articulating, but also crucially quantifying, the impact of these strategic improvements. Gallagher Re has been working closely with our clients to evidence the impact of these shifts, from overhauling claims practices, to changes in business mix by geography or industry.<\/p>\n

“These have been traditionally harder to quantify in long-tailed casualty lines but with additional work to quantify cedant-specific actions, have a material impact on renewal outcomes,” said Gallagher Re.<\/p>\n

In specialty lines, the broker highlights several dynamics during the mid-year renewals. In cyber, a continuation of 1.1 2025 trends persisted, driving risk-adjusted rate increases in favour of buyers of reinsurance and retrocession cover. In aviation, Gallagher Re underlines that re\/insurers will likely have to wait some time to understand the impact of the loss of the recent Air India flight in Ahmedabad, but notes the clarity carriers now have on losses related to the aircraft stranded in Russia.<\/p>\n

“Buyers generally experienced a more competitive reinsurance market at the July 1 renewal compared to recent years, with capacity available, even where demand increased, and reinsurers looking to grow,” said Tom Wakefield, Global Chief Executive Officer, Gallagher Re. “With these conditions in place, clients had the opportunity to challenge the status quo, and secure improvements to the structure and terms of their property and specialty reinsurance programs.”<\/p>\n

“At the April renewal, we commented that if there were no major unexpected events in the remainder of 2025, it was likely that reinsurers’ differentiated approach to risk-adjusted rate reductions would continue. So far, the market is supporting this view. This is a market where cedants and brokers have room to maneuver and reinsurers to innovate – and we are pushing beyond rates to a broader optimization of reinsurance placements,” added Wakefield.<\/p>\n

The post Supply & demand balance shifts back towards buyers at mid-year reinsurance renewals: Gallagher Re<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Buyers of protection had the opportunity to secure improvements to the structure of their property and specialty reinsurance programmes at the July 1st, 2025, reinsurance renewals, a period in which Gallagher Re notes a shift in the balance of supply and demand back towards reinsurance buyers. The reinsurance broker’s 1st View 2025 renewals report examines […]<\/p>\n","protected":false},"author":1,"featured_media":6272,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"_links":{"self":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/6270"}],"collection":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/comments?post=6270"}],"version-history":[{"count":3,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/6270\/revisions"}],"predecessor-version":[{"id":6274,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/posts\/6270\/revisions\/6274"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media\/6272"}],"wp:attachment":[{"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/media?parent=6270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/categories?post=6270"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/calebdewey.com\/index.php\/wp-json\/wp\/v2\/tags?post=6270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}