Jerad Leigh, co-founder and chief executive of re/insurtech firm Supercede, has given his outlook for the reinsurance sector in 2026, citing increased collaboration between brokers and cedents alongside cautionary warnings about artificial intelligence adoption.
Leigh identified cedent-centric collaboration as the primary growth opportunity facing the industry. Historically, brokers have built analytics engines and portfolio evaluation tools that remain insulated within their organizations, with cedents waiting days or weeks for analysis and strategy recommendations.
That model is shifting as cedents develop their own technical capabilities and seek active involvement in the reinsurance purchasing process.
"Every challenger broker that we speak with has set goals of being more cedent-friendly, collaborative, and easy to work with," Leigh said. These emerging competitors are recruiting leaders from established brokers who understand where traditional solutions have fallen short and recognize the business opportunity in closer client partnerships.
Challenger brokers are consolidating their offerings around platforms cedents already use rather than requiring multiple portals or processes.
The market is also evolving beyond traditional treaty placements. Demand for facultative reinsurance has increased as insurers deploy it strategically to support growth in competitive environments.
Meanwhile, the catastrophe bond market continues expanding, with outstanding volume reaching US$54 billion and 2025 issuance surpassing US$17.3 billion, offering cedents additional capital sources and diversification options.
Leigh warned the industry against prioritizing artificial intelligence without addressing fundamental business problems. AI project failure rates within large enterprises have reached as high as 95%, a trend he attributed to teams losing sight of core objectives while pursuing technological advancement.
Successful AI implementation requires starting with specific use cases rather than attempting comprehensive transformation at once, with companies proving value incrementally before scaling efforts.
Despite these cautionary notes, the sector approaches 2026 from a position of considerable strength. Industry capital has increased more than 30% since 2015, with major reinsurers reporting year-over-year net income growth in the first half of 2025.
Alternative capital now represents approximately 17% of global reinsurance capacity, creating competitive conditions that favor cedents through expanded coverage options and improved terms.
Leigh characterized the industry's challenges as persistent rather than novel, noting that navigating uncertainty remains the default position for a market that has consistently demonstrated resilience.
