According to Gallagher Re’s April 1st View Renewal Report, U.S. cyber reinsurance rates fell approximately 32% during the April 1 renewal period, driven by a surge in overcapacity, which, coupled with stable performance and lower non-proportional pricing, facilitated the development of customized solutions for cyber portfolios.
While key rates for most U.S. network operators remain unchanged or negative, reinsurance brokers note that leading insurers in the large enterprise and small and medium-sized enterprise (SME) segments have begun to see a shift, with rates expected to stabilize and potentially rise in late 2026.
James Dominguez, senior vice president of North American Network Reinsurance Brokers, pointed out in the report that the penetration rate in the small and medium-sized enterprise sector is increasing.
This represents a year-over-year increase in total deployment limits, an increase that was largely offset by lower interest rates. It is claimed that a certain degree of interest rate stability should lead to an increase in GWP.
In addition, reinsurers maintain a strong appetite for cyber risks, supported by continued excess capacity to meet demand. Average market transfer volumes have remained stable year over year, with Gallagher Re observing an average renewal rate of 39% in the first quarter, down slightly from 40% in 2025.
Reinsurance pricing is already soft due to overcapacity, a trend the company expects to continue into 2026. According to Gallagher Re’s analysis, the risk-adjusted average decline in non-proportional placements is particularly significant, at approximately 32%.
“The combination of extensive reinsurance capabilities, stable performance and low non-proportional pricing has driven the development of customized solutions for network portfolios,” Dominguez said.
Markets remain cautious due to geopolitical tensions in the Middle East. While there has been a relative lack of significant cyber incidents in early 2026, several high-profile incidents in 2025 have put conflicts in the region at the forefront of risk managers’ minds.
“We may also see an impact on the market from recent geopolitical events in the Middle East. Therefore, it remains uncertain how the U.S. cyber market will grow this year,” Dominguez said.
Additionally, the Stryker wiper incident has raised serious concerns about the U.S. contract war exclusion and its potential impact.
As a result, Gallagher Re highlights that North American insurers and reinsurers are paying close attention to the US-Iran conflict and its potential impact on policies, particularly with regard to war exclusions and potential “nation-state” activities.
While the most notable change at US Cyber was a 32% drop in catastrophic non-destructive pricing, pro-rated commissions increased slightly by 1%.
Gallagher’s report also covers the Japanese networking industry, which continues to grow at a 10% year-over-year rate, driven by the SMB and personal segments, with stable origin rates and increasing demand for Risk XL plans.
However, Osamu Asari, executive director of International Cyber, noted that “the growth rate has slowed down compared to previous years.”
While there were some notable individual losses last year, such as the Asahi Group ransomware incident in September 2025, the overall impact on the treaty outcome was minimal.
The broker said that unlike other mature markets, Japan’s original interest rates have remained stable in recent years and are expected to remain that way next year as well.