Reinsurers are prioritizing submissions that contain both detailed qualitative and quantitative data as insurers approach contract negotiations this year, according to guidance from Gen Re on reinsurance underwriting practices.
The approach reflects an industry evolution in how carriers and reinsurers structure agreements. Rather than relying solely on historical loss data, reinsurers now expect submissions to articulate client priorities, competitive positioning and strategic objectives across multiple timeframes.
This dual-data methodology enables underwriters to align coverage structures with company goals rather than applying standardized templates. The strength of this approach is particularly evident given current market conditions, where dedicated global reinsurance capital reached US$805 billion at the end of Q2 2025, with traditional reinsurance capital projected to grow approximately 8% throughout 2025.
This capital abundance supports favorable conditions for insurance and reinsurance buyers seeking coverage, but only those who can articulate clear strategic needs.
Gen Re executives noted that submissions should distinguish between short-term initiatives spanning the next 12 months and longer-term strategic plans. Insurers that have developed comprehensive action plans addressing underperforming portfolios – including timelines and projected portfolio impact – provide reinsurers with the analytical framework necessary for more effective treaty design.
For property classes, reinsurers are examining rate level projections across different lines, along with assessments of inflation and tariff impacts. Understanding the source of capacity demands has become critical, as reinsurers seek clarity on whether additional protection stems from inflation-driven property value updates, new business development or shifts in risk appetite.
Secondary perils have become a focal point in property underwriting discussions, with reinsurers asking about underwriting standards for roofs and accumulation management strategies.
Within casualty classes, legal system abuse represents an expanding concern. Reinsurers are seeking to understand how litigation environments differ across territories where insurers operate and what underwriting adjustments carriers have implemented in response to litigation trends.
Distribution practices also warrant examination, including the authority levels granted to agents and what decisions reach the home office for review.
The reinsurance market itself is undergoing structural shifts that inform Gen Re's guidance. Alternative capital now represents about 17% of global reinsurance capital, an increase of 33% since 2020 and 68% since 2015, with catastrophe bond issuance reaching US$17.6 billion in H1 2025.
Sidecars have simultaneously emerged as a significant source of proportional reinsurance capacity, helping insurers manage claims frequency and volatility while broadening the market's reach into casualty business.
Submitting updated information throughout the contract cycle remains essential given market volatility and these evolving capital structures. According to Gen Re, submissions prepared in late summer may no longer reflect current market conditions by year-end, making proactive communication with reinsurance markets essential for maintaining participation and pricing stability.
Data quality remains paramount in the underwriting process. The resulting treaty structure must align with stated company objectives, whether for earnings protection or balance sheet stabilization.
