Buyers of cyber reinsurance continued to benefit from favorable supply dynamics at the early 2026 renewals, according to Howden Re. The broker said conditions mirrored those seen in 2025, supported by competition among reinsurers and a manageable loss environment.
Despite several high-profile cyberattacks and several systemic events during the year, financial impacts were not significant enough to shift pricing sentiment. Excess capacity and reinsurer appetite remained in favor of cedents.
Luke Foord-Kelcey (pictured above), global head of cyber at Howden Re, said cedents entered the renewal period with access to favorable terms and structural flexibility. "As the cyber market enters 2026, plentiful capacity and strong reinsurer appetite remain to the cedents' advantage, manifesting in favorable terms and greater structural flexibility at renewals," Foord-Kelcey said.
He added that cedents with disciplined underwriting and considered growth plans were received more favorably. "Cedents that could demonstrate considered growth plans alongside disciplined underwriting – and an ability to stay ahead of an evolving threat landscape – were best received," he said.
The supply side saw continued pressure from new entrants. Of the nine reinsurers that entered the market on January 1, 2025, bringing US$250 million in new capacity, most did not meet their deployment targets and reloaded for 2026. This contributed to abundant capacity and competitive terms.
The reinsurance dynamics reflect broader growth expectations for the cyber insurance market. Gallagher's 2026 Cyber Insurance Market Outlook projects the global market could reach between US$30 billion and US$50 billion by 2030, up from an estimated US$16 billion to US$20 billion in 2025.
Ceding commissions on quota share business increased by 1% to 1.5% for most buyers. Following increases of 3% to 4% since 2022-23, most commission percentages have now reached the mid-30s range. Howden Re said commissions are likely to stabilize at current levels unless the loss environment deteriorates.
A loss-free year in the excess of loss market pushed global stop-loss pricing down by 15% to 20%. Declines were sharper in international markets than in the US, reflecting underlying performance and growth potential.
Buyers also showed increased interest in portfolio-level optimization, exploring ways to monetize profitable segments of their books while achieving capital relief. This led to the execution of new structures, including aggregate of event, variable quota share, and per risk excess of loss solutions.
