Reinsurance broker Howden Re reported a 25% drop in risk-adjusted property catastrophe rates on a weighted average basis at reinsurance renewals on June 1, accelerating from the -14.7% and -16% declines the company recorded during January and April renewals, respectively.
Howden Re’s June 1 risk-adjusted Property Catastrophe Reinsurance Online Rates (ROL) index showed continued weakness since the hard market peak in 2023, with no-loss plans seeing the largest cuts.
With pricing falling further for insurance buyers, Howden Re is seeing a significant increase in demand as the placement window is longer than in recent years. According to the broker, in this renewal, the ceding company gains leverage on terms, structure and contracted amounts until closing.
Reinsurance brokers report that capacity is at an adequate level of 1.6, causing the supply-demand balance to tilt further in favor of buyers, with most sellers “willing to provide support” as cedants look to secure expanded layers of coverage, traditional cascaded all-risk coverage and strategic protection against second and third events.
Howden Re highlighted strong demand in Florida at renewals in mid-2026, but also noted that this demand was absorbed by the depth of traditional and alternative reinsurance capacity, as sellers showed greater interest in structures such as prepaid recovery, second event and total coverage or top-down packages. The company also subsequently reported increased reinsurer interest in participating in lower attachment tiers, a significant change from recent renewals following the housing market reset in 2023, when reinsurers moved programs to higher tiers as secondary risk losses continued to rise.
“The coastal real estate market is stronger entering this hurricane season than at any time in the post-reform era. It’s clear that reinsurers have taken the time to understand the measurable benefits of Florida’s reforms. This understanding is reflected in the expanding interest in Florida/coastal hurricane risk and capacity that is truly competitive at dependency levels that were difficult to fill just twelve months ago. Additionally, interest in structural enhancements has returned, including traditional cascaded all-hazard coverage and strategic level protection, adding further financial security during the active season,” said David Re, Managing Director at Howden Re Unsworth said.
The chart below compares Howden Re’s June 1 risk-adjusted property catastrophe reinsurance rate online index with reinsurer economic value added.
Outside of Florida, June 1 placements also continued a soft trend seen in January and April 2026 renewals, with Howden Re reporting that the top tiers attracted the most competitive prices. The reinsurance broker also said the execution of catastrophe bonds provided “structural competitive tensions at remote attachment points” in this renewal. Additionally, as in Florida, reinsurer interest in portfolio structures, horizontal underwriting and aggregation capabilities is expanding in other regions.
David Flandro, head of industry analysis and strategic consulting at Howden Re, commented: “The striking feature of this update is the dichotomy between rising inflation, interest rates and risk premiums and the direction of reinsurance pricing.
“Capital has never been more abundant in a higher-exposure environment. The last hard market began with an interest rate shock; today’s geopolitical landscape presents significant inflationary and asset-side risks that could hurt capital as quickly as it did three years ago. How much further pricing will fall as an EVA contract before the economy comes back into play will determine the January 1, 2027 issue.”