Sebastian Cook, Deputy CEO of Howden Re International, said that reinsurance rates have eased from their peak in 2023 but are still much higher than they were during the previous decade. He noted that the sector has shown its ability to handle complex situations and maintains a strong capital position. According to Cook, cedents are focusing on long-term partnerships and innovative solutions, which allows reinsurers to strengthen relationships and increase premiums while margins remain favorable.
David Flandro, Head of Industry Analysis & Strategic Advisory at Howden Re, emphasized the importance of balancing underwriting discipline with maintaining long-term client partnerships. "The industry’s priority is to strike the right balance between maintaining underwriting discipline while ensuring long-term partnership with clients. Although rates are moderating from 2023 levels, this moderation comes from a position of historically high pricing strength, meaning that economic value can still be achieved in this environment."
Tobias Andersson, Head of Continental Europe at Howden Re, highlighted structural changes within the market. He explained that clients have taken on higher retentions due to stricter terms and increased volatility in losses. Andersson stated: "Clients have absorbed higher retentions, driven by tighter terms and a more volatile loss environment. Now, it is about aligning risk appetite with resilience."
These comments come as the reinsurance sector enters a new phase marked by what executives describe as hard market softening—a period where prices ease but remain elevated compared to historical norms. The executives agreed that transparency, adaptability, and collaboration across the value chain will be key for future success.