Howden Re said the July 1, 2026 reinsurance renewals in Latin America were completed in a market with ample capacity, increased competition and growing demand for structural innovation, with rate reductions of 15% to 20% for property catastrophe excess loss plans.
Expanding interest from the Bermuda, London and MGA markets was reported in Latin America’s reinsurance renewals on July 1, 2026, with existing local players joining the mix, deepening the supply base and giving cedants meaningful influence over pricing and program design.
“The most obvious manifestation of this leverage is risk-adjusted pricing. Interest rates on real estate catastrophe excess loss programs have been reduced by 15% to 20%, and a significant trend of over-placement has added to the downward pressure,” Howden Re explained.
The company said the weakness was not limited to pricing, with ample proportional capacity pushing ceding commissions up a further two to three percentage points as reinsurers competed for ceding portfolios.
As proportional allocations increase, cedants are purchasing smaller catastrophes in excess of loss limits, a structural shift that reflects both the availability of proportional protection and the economics of a well-supplied market.
Reinsurers are also taking advantage of updates to expand their reach. As property catastrophe capabilities settle in, interest has expanded into casualty and specialty lines as the market looks to complement its Latin American portfolio with additional business.
Howden Re also noted that low-add-on, high-rate online tiers of catastrophe and risk plans are attracting increasing interest in structured solutions as cedants and reinsurers explore more tailored approaches to risk transfer in the more volatile parts of the tower.
Parametric products, meanwhile, are said to be growing in popularity, moving from “niche considerations” to more widely evaluated alternative and complementary coverage options.
April McLaughlin, principal at Howden Miami, commented: “Latin America is attracting a broader and more competitive reinsurance market than we have seen for some time.
“The interest in the Bermuda, London and MGA markets is no accident. It reflects a real reassessment of the risk-adjusted opportunities in the region. Our role is to help ceding companies navigate this environment with clarity and purpose, ensuring not only competitive pricing but the structures in place to serve them beyond the renewal cycle.”
Carlos Garcia, managing director at Howden Re, said: “The highlight of this update is not only the increase in available capacity, but also the growing willingness to explore alternative methods of risk transfer.
“Cedents are thinking more creatively about their plans, exploring structured solutions for the lower end of towers, and seriously considering parametric products as part of their overall coverage strategies. This level of sophistication is a healthy development for the market, and we expect it to continue.”
Looking ahead, Howden Re observes that the Latin American reinsurance market is heading into the second half of 2026 with capacity levels continuing to favor buyers.
The firm concluded: “Structural trends evident in this update, including over-allocation, rising ceding commissions, a shift in interest towards casualty and specialty lines and growing interest in parametric and structured products, suggest that abundant capacity impacts not only pricing but also project design. As competition remains fierce, cedants are well-positioned to evaluate a wider range of risk transfer options than in recent years.”
In related news, Howden Re recently reported that July 1 reinsurance renewals in Australia and New Zealand (ANZ) essentially delivered 10% to 15% no-loss business rate reductions as insurance buyers increased vertical limit purchases.
Analysis by Howden Re shows some cedants actually received fee reductions of more than 15 per cent, as ANZ’s renewals came amid continued reinsurer profitability, ample market capacity and an “increasingly confident buyer base”.
