Reinsurance buyers in the Middle East achieved significantly lower risk-adjusted rates during the July 2026 renewal period as ample capacity and intense competition accelerated market weakness across the EMEA region.
Gallagher Re’s First View Renewal Report for July 2026 shows that reinsurance buyers have entered a period in which conditions have further favored them, allowing ceding companies to secure risk-adjusted rate reductions across a number of regions and categories.
This is also the case in the EMEA region, where cedents have successfully exploited conditions in the region to obtain better terms and conditions from reinsurers with greater appetites.
Gallagher Re’s findings highlight that pro-rata commissions have generally remained stable or increased slightly, up to a maximum of 2%. At the same time, risk-adjusted rates for plans without loss exposure fell significantly by 10% to 20%, but accounts affected by losses saw modest increases of 0% to 5%.
In the catastrophic space, lossless renewals ensure significant declines of 15% to 25%, while loss-affected plans face modest changes between 0% and 5%.
The report also noted that in the UAE, flooding events in March triggered some underwriting caution but did not cause significant disruption to overall market dynamics.
Although plans affected by the losses have come under greater scrutiny, particularly around flood exposure, modeling and data quality, capacity remains available.
At the same time, reinsurers are showing strong interest in lossless accounts, which continue to benefit from competitive pricing and available capacity.
Competition is particularly fierce in Saudi Arabia (KSA), especially when it comes to proportional plans.
As the market continues to attract regional and international reinsurers focused on expansion, commissions and capacity offered to cedants subsequently increase, putting downward pressure on pricing.
Negotiations on overall pricing, commissions and capacity have been active, with reinsurers demonstrating the flexibility needed to protect their market share, the report said.
In line with the broader regional pattern, other Gulf markets remain highly competitive.
“Overall, the market is softening further and reinsurance buyers are increasingly paying attention to this trend and engaging in strategic negotiations with reinsurers to ensure the best possible outcome. ” the analyst concluded.
