The global reinsurance market continued to soften during the April 1 renewal season, with significant price reductions recorded across Asia, including India, according to a report released Thursday by Guy Carpenter, the reinsurance broking arm of Marsh.
The broker cited notable price declines across key April 1 renewal territories, driven largely by macro trends as rising capital led to excess capacity.
The renewals marked the first cycle since the onset of the US-Israel conflict with Iran. Specialty lines renewals in March and April were influenced by the war, with a strong emphasis on maintaining coverage for exposed or at-risk cedents.
Treaty reinsurers moved quickly to assess potential exposures. “Given the scale of the conflict, potential losses across political violence, marine, and aviation lines could be significant,” Guy Carpenter noted, adding that no prejudice against reinsurance buyers was observed compared with the January renewals.
In Japan, the largest Asia territory renewing on April 1, Guy Carpenter reported double-digit rate decreases in property catastrophe and property per-risk lines, with softening trends also seen in casualty and specialty lines. Terms and structures remained stable, with many renewals finalized ahead of schedule.
Across other markets – including Indonesia, Korea, the Philippines, and Singapore – further softening was observed, with double-digit rate reductions on loss-free catastrophe business. Terms and conditions remained largely stable.
“The Asia reinsurance market is demonstrating robust capacity and competitive pricing, particularly in Japan and surrounding territories,” Tony Gallagher, CEO, Asia Pacific, Guy Carpenter. “Despite geopolitical uncertainties, reinsurers are keen to support clients with innovative solutions, ensuring stability and continuity in a rapidly evolving environment.”
About $1 billion in Asia reinsurance premiums were expected to renew on April 1, alongside all Indian treaties. Guy Carpenter described India’s renewal season as buyer-friendly and highly competitive, supported by benign loss experience and strong local capacity.
Loss-free excess-of-loss business recorded price reductions of more than 20%, while pricing remained competitive across liability and specialty lines, including cyber. The number of international reinsurers in India continues to grow, with 18 foreign reinsurers registered with the Insurance Finance and Services Centre, according to Guy Carpenter.
“Reinsurers in India and the Middle East are demonstrating a strong commitment to maintain coverage despite the complexities posed by ongoing conflicts,” said Atish Suri, CEO, India, Middle East & Africa, Guy Carpenter. “Our focus remains on protecting clients’ interests and ensuring that no significant commercial limitations are placed on renewals, reflecting the resilience and adaptability of the market.”
Insured catastrophe losses for the first quarter of 2026 are estimated at around $13 billion, more than 50% below the five-year inflation-adjusted average, Guy Carpenter noted.
Howden noted that dislocation was “currently mainly concentrated in the specialty market: in marine war risk, energy and political violence lines, with capacity repricing at several multiples of pre-conflict levels.”
