Reinsurers are shifting their growth focus from core catastrophe markets toward high-barrier specialty lines as property catastrophe rates face continued softening, according to Berenberg comments following the 2026 Monte Carlo Rendez-Vous de Septembre.
During their time at the 2026 RVS, Berenberg met with representatives of Hannover Re, Hiscox, Munich Re, SCOR, Swiss Re, UNIQA and Howden Insurance.
They reported an ongoing trend of softening prices that is expected to continue, alongside emerging flexibility in terms and conditions, though overall pricing remains risk-adequate.
Among the main topics discussed was reinsurers’ appetite and capacity for growth.
Berenberg observed that even though property cat cover is absorbing the market’s steepest rate declines – which in part reflects its profitability since 2023 -, US property cat remains attractive for reinsurers.
This is in part because in the US pricing reacts quickly to loss events, typically allowing carriers to achieve payback within two years.
Outside traditional cat lines, reinsurers’ focus for growth includes speciality lines and, within speciality lines, construction and engineering risks, as well as credit and surety.
Structured solutions, which often consist of multi-year, multiline covers, are another area of growth, Berenberg noted.
While data centres present a potential area of growth, the companies met are taking a cautious approach, held back by a lack of historical data and additional risks (e.g. aggregation risk).
According to analysts, these challenges restrict the deployment of a material level of reinsurance capital, beyond the initial build-up phase of the centres.
Finally, if rates fall below levels needed to adequately compensate for risk, reinsurers will reduce capacity and use their diversified business models to redirect freed-up capital to life and health reinsurance.
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