Global reinsurance market remains stable despite significant catastrophic losses and unstable economy
The global reinsurance market remains stable despite significant catastrophic losses, geopolitical turmoil and unstable economy. He spoke during the presentation of Q3 2025 results, where the company’s management highlighted confident growth against the backdrop of lower rates and changes in underwriting.
The volume of specialized reinsurance capital by the end of 2025 is expected to be around $650 billion.
Marsh McLennan President John Doyle noted that there is more than enough reinsurance capacity in the market, competition is intensifying, and reinsurers are actively looking for profitable ways to allocate this capital. “It’s not despair, but it looks like a real race,” Doyle noted.
In the liability reinsurance market, contract renewals were stable, with supply and demand balanced. Doyle attributes this to tighter requirements from primary insurers and greater appetite from reinsurers.
“Clients are looking for strategies that are aligned with market conditions and their level of volatility,” he said. Doyle added that the cost of risk is rising while property insurance rates are falling, and that this trend is not likely to last long. Barring large losses and macroeconomic surprises, 2026 will look similar to 2025 in terms of profitability.
According to the Marsh Global Insurance Market Index, global commercial insurance rates fell 4% in Q3 2025 after a similar decline in the second quarter.
Property reinsurance was the main driver. The picture is soft by region: the US – minus 1%, Canada – minus 3%, the UK and Europe – mid-single-digit declines, Latin America and Asia – similar results, and the Pacific region – double-digit declines.
- In the liability reinsurance segment, the trend is reversed. Rates increased by 3% globally, and in the US excess liability jumped by 16% due to pressure in the claims sector.
- Workers’ compensation reinsurance fell by 5%.
- Property risk rates decreased by 8% year-on-year compared to 7% in the previous quarter.
- Financial and professional liability – down by 5%.
- Cyber insurance – down by 6%.
Marsh McLennan points out bluntly – rates now look attractive, but the real cost of risk is growing. And reinsurers with large capital reserves are ready to take advantage of this.