Reinsurance broker Guy Carpenter reported that Indian insurance companies received the most favorable reinsurance terms in recent history during the April 1 renewal period, with risk-adjusted rates falling by as much as 30%.
According to Guy Carpenter’s Reinsurance Renewal Report for April 1, 2026, this renewal season marks a marked softening of the market, driven by a surge in local capacity and a relatively modest loss year, providing greater flexibility for domestic players.
“The April 1 renewal is positive for cedants, reflecting the global cycle, but more pronounced locally due to India’s relatively benign loss experience and the influx of strong capacity available locally,” the company said.
Adding: “This renewal continues the soft trend seen on January 1, with improved terms, increased competition and greater flexibility across most Indian reinsurance schemes, making it one of the most competitive renewal seasons in recent years.”
During the renewal period on April 1, there was a significant change in prices across lines in India. Risk-adjusted rates for lossless non-proportional XoL lines decreased by -20% to -30%.
Strong-performing cedants received the most favorable rate cuts at the upper end of the range, the report said.
Scale Line’s commission terms improved from flat to +2% due to higher transfer volumes. Rates for specialty lines such as liability XoL, aviation and terrorism have also been reduced by -10% to 15%.
The broker added: “Higher quota share transfer rates were negotiated, supporting ceded capital optimization. Multi-year multi-line treaties and the overall XoL structure also gained significant traction.
“Despite market weakness, pricing remains competitive in areas such as climate risk, cyber and long-tail liability. In health and medical, post-pandemic medical inflation and rising claims severity are driving some upward pressure.”
Regarding terms and conditions, cedants are looking to make leadership changes to ensure they get the best terms despite the influx of capacity.
In response to pricing pressure at renewal on April 1, the report noted that despite rising secondary risks in Asia, India still experienced relatively stable losses. Therefore, these events are not the main driver of price pressure in the country.
Reinsurers are increasingly focusing on XoL structures, recognizing that ex-ante insurance is often insufficient to manage high-frequency, attrition losses.
India’s inland flood-prone regions, such as Assam, Bihar and Andhra Pradesh, face greater scrutiny from reinsurers who are demanding greater data transparency from cedants operating in these high-flood areas.
The report also covers buying behavior in India, noting that the country “stands out as a market where strong growth, lower catastrophe losses and growing reinsurer interest combine to create a more competitive and buyer-friendly environment.”
Insurers are increasingly seeking higher share transfer quotas to manage capital and as a solvency optimization tool. To improve efficiency and overall risk transfer, large private insurance companies and some public institutions are increasingly adopting multi-line treaty structures.
The current competitive landscape in India has been enhanced by global capacity expansion, primarily due to the establishment of GIFT City and recent initiatives by the Insurance Regulatory and Development Authority of India (IRDAI) targeting the collateral requirements of offshore players.
India’s double-digit GWP growth trajectory continues to attract new reinsurance capacity to the market. As of March 24, 2026, there were 18 registered foreign reinsurance companies with the GIFT International Financial Services Center (IFSC), demonstrating the continued attractiveness of the Indian reinsurance market.
Regarding the conflict in the Middle East, Guy Carpenter said: “While the current conflict in the Middle East has attracted global attention, it has not had a significant impact on India’s results on April 1, with the impact mainly limited to specific specialty lines, especially temporary lines as opposed to treaty reinsurance. Reinsurers have issued Notices of Cancellation (NOC) for marine hull insurance, particularly in high-risk areas.”