In India’s April 1 renewals, Gallagher Re found widespread softening in risk-adjusted rates across most lines and treaties in the country’s real estate sector, with loss-free and well-performing projects achieving an average rate reduction of -10% to -15%.
Reinsurance broker Gallagher Re’s latest First View report highlights India’s transition to a softer and capital-driven phase. The broker said the market does technically remain underwritten, with reinsurers showing clear differentiation in performance, exposure and data quality.
The property treaty renewals in India take place in a well-capitalized and increasingly competitive environment, with Gallagher Re highlighting that reinsurer interest in most business areas remains strong. As a result, there is ample capacity in most segments, but oversubscription in high-quality placements is common as reinsurers seek to deploy capital in India’s growth markets.
In terms of rate changes, the risk-adjusted rates for the No Risk Loss Plan, the No Cat Loss Plan, and the Catastrophe Loss Strike Plan all fell between -10% and -20% in 2026.
“There are competitive pressures on dominant terms. Subsequent capacity additions enable cedents to challenge dominant pricing and structures, particularly at the consumption level,” Gallagher Re said. “Pricing for accounts with recent loss activity or catastrophe exposure is stable, with reinsurers maintaining underwriting thresholds.”
Structured solutions have gained traction this year, with slight increases in multi-year excess loss activity across wear layers, full-account quota share coverage and parametric structures, according to Gallagher Re.
“April 1 reflected market softening, but there remains significant variation in renewal outcomes based on cedant performance and data quality,” the reinsurance broker said.
In terms of the capacity of the Indian market, Gallagher Re found that the momentum continues, supported by global capital inflows and expanding participation through GIFT City, a low-tax financial hub in Gujarat.
“Cedents leverage this market depth to increase reinsurer scale. GIC Re [India’s national reinsurer]Foreign Reinsurance Branches (FRB) and reinsurers operating through GIFT City played a key anchoring role in the placement. However, Indian insurance regulator IRDAI’s priorities and local retention requirements continue to influence placement strategies, with domestic reinsurers also playing a central role,” the company said.