Global professional services firm Aon said reinsurers are increasingly willing to offer more flexible structures and a wider range of underwriting options during renewal periods for U.S. real estate in mid-2026, allowing insurers to strengthen cover and make greater use of tailored reinsurance solutions while market conditions remain favorable to buyers.
in its Reinsurance market dynamics report Aon said reinsurers have shown widespread interest in expanded coverage and more flexible program structures for renewals in mid-2026.
The company said many insurers are taking advantage of improved pricing conditions by reinvesting premium savings into additional catastrophe coverage, purchasing higher limits at the top of plans as well as frequency and total coverage.
Aon said reinsurers are also meeting strong demand for wildfire protection, following the 2025 Palisades and Eaton fires in California, which continue to cause greater concern as understanding of the risks improves.
Aon said global renewal demand for property catastrophe reinsurance increased by more than 10%, driven by higher catastrophe limits, expanded product sourcing and a significant increase in demand from Florida insurers.
The global brokerage group said many insurers have increased their use of reinsurance to support growth strategies while moving more risk to higher program tiers.
Aon said that while net retention has increased following the market reset in 2023, it has remained broadly unchanged, but insurers continue to work on more flexible structures to improve revenue protection and manage frequency risk. The company also highlighted its ongoing product development, including high-efficiency frequency disaster covers and other targeted solutions.
Aon said reinsurance capacity remains abundant, with supplies from traditional reinsurers and third-party capital able to easily meet growing demand.
The company said growing interest from established reinsurers, coupled with continued support from investors in insurance-related securities, had increased competition, resulting in price reductions for nearly all placements, including some that had recently posted losses. Aon also reported that the company will continue to support managing general agents (MGAs) as they expand their reach beyond established players to new entrants.
Aon said interest in proportional reinsurance continues to grow following renewals on January 1 and April 1, with more insurers expected to evaluate proportional arrangements in the coming year.
The report also said that improved data quality, favorable market conditions and increasingly sophisticated analytics, including artificial intelligence, have enabled Aon to arrange more customized and efficient reinsurance programs. According to the company, higher quality underwriting information provided by insurers can ensure more targeted deals and better terms.
Aon added that buyers are placing greater emphasis on customized reinsurance products rather than just price, while reinsurers have also shown a greater willingness to support innovative structures, including solutions designed to increase the efficiency of low-add-on catastrophe insurance.
Aon said U.S. insured catastrophe losses in the first half of 2026 were the lowest since 2020. While several severe convective storm events each caused insured losses of more than $1 billion, the company said overall losses from these events remained below levels seen in recent record years. Aon also noted that Winter Storm Fern, which struck in January, caused approximately $3.7 billion in insured losses, making it one of the costliest winter storms in U.S. history.
Sarah Mumm, head of U.S. real estate at Aon Re, added: “As we enter 1/1 renewals, we are seeing U.S. real estate buyers move away from simply taking advantage of softer pricing to leveraging the market to redesign their protection. Those who combine stronger data and emerging AI-driven analytics with a willingness to adopt scale and more customized structures will be best positioned to secure differentiated capabilities, support new growth, and create plans that are more resilient to longer-term earnings swings.”
