A new September 2025 report from Aon plc, Snapshot Guide to the Reinsurance Renewal: Buying Power Grows and Market Shift, says demand for reinsurance in all forms is robust, capacity is plentiful, and reinsurers are positioned to support insurers pursuing profitable growth.

“The momentum is with reinsurance buyers as the January 1 renewal season gets underway,” the report states. “The last three years have been challenging for the insurance industry with elevated catastrophe loss frequency and economic and social inflation. However, pricing and underwriting actions have restored profitability and made the industry more resilient. Technology and data are also driving a more sustainable market, providing risk insights and enabling more informed decision making.” 

Operating environment is fragile 

The report notes that 40 per cent of global catastrophe losses were not insured in the first half of 2025. They also note that while the outlook is positive, they say the operating environment is fragile, with insured losses in 2025 already 75 per cent above the eight-year average. “The industry demonstrated resilience in recent years and proven its ability to adapt, but sudden or unexpected events can quickly change market sentiment and conditions,” they warn.

All told, global reinsurance capital hit a new high of approximately $735-billion at June 30.

Among the renewal season themes Aon discusses in the report, they say insurers can now leverage a diverse range of capital, reinsurance and products that were not feasible a year ago. “These include notable opportunities for facultative reinsurance, structured solutions and catastrophe bonds, as well as treaty and proportional reinsurance,” they write. “The most successful reinsurers at the January renewal will be creative and partner with insurers to respond to their needs. We also see strong investor appetite to expand into catastrophe bonds, aggregate covers and even secondary perils.” The report goes on to look at catastrophe bonds and insurance-linked securities.

In property, reinsurers are expected to offer a wider array of structures which have become more accessible and competitive over the past year. The casualty market, meanwhile, remains broadly stable, they say, but add that the sector is not without its challenges. (The report focuses on U.S. exposures including nuclear verdicts and emerging risks like microplastics, addictive software and ultra processed foods.) 

Growth and innovation in the cyber market 

Finally, they say reinsurers are ready to support growth and innovation in the cyber market. “At upcoming 2026 renewals, insurers will find a broader range of reinsurance products and structures available, including more nuanced options that address specific exposures, catastrophic risks and earnings volatility,” they write. “The underlying cyber insurance market remains resilient despite ten consecutive quarters of rate reductions.” They add that rates appear to be stabilizing while claims remain within expectations.

“The average claim payment fell by 77 per cent in 2024 despite an overall increase in claims frequency,” the report continues. “Global cyber insurance market penetration remains low relative to exposures, but reinsurance capacity is positioned to support strong growth, with the global cyber insurance market projected to reach $24-billion by 2029, up from $15-billion today.” (Figures in U.S. dollars.) The cyber reinsurance market, meanwhile, is forecast to grow from $6-billion gross written premium to $9-billion by 2029.