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Buyers gain upper hand as reinsurance rates fall during June 1 renewals - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Buyers gain upper hand as reinsurance rates fall during June 1 renewals by Matthew Lerner Agents and Brokers , Reinsurance Arthur J. Gallagher & Co. , Guy Carpenter & Co. Jun 9, 2026 Reinsurance rates fell 15%-20% on average at June 1 renewals, with some declines reaching 25%, as abundant reinsurance capacity outstripped demand and shifted negotiating leverage to cedents, according to multiple sources. The renewals, which are dominated by property catastrophe programs in the Southeastern U.S., include hurricane-prone coastal states such as Florida. There, the ongoing “depopulation” of Citizens Property Insurance, the state-backed insurer of last resort, helped drive demand for catastrophe coverage. Reinsurance capital increased by 11% to a record $648 billion in 2025, with $513 billion in traditional capacity and $135 billion in alternative capital, Gallagher Re reported in early May . “The expectation was clearly that there was going to be continuation of softening,” said Adam Schwebach, Tampa, Florida-based head of North American property for Gallagher Re, a unit of Arthur J. Gallagher & Co. “What gets figured out through that process is the magnitude.” There are “pretty sizable rate decreases flowing through to the ceding carriers from reinsurers,” as softening accelerated in Florida’s property catastrophe market and extended across the Southeast, he said. Pricing was “largely in line with expectations,” said Randy Fuller, Tampa-based Florida segment leader for Guy Carpenter & Co., Marsh’s reinsurance brokerage arm. “Pricing was right where we expected it to be.” Property catastrophe risk-adjusted rate declines averaged 15%-20%, according to a May 28 Guy Carpenter report . Property rate changes were “top of mind” across the industry because June 1 renewals are more heavily weighted toward property business than casualty, Marcus Winter, president and CEO Munich Re U.S., said in an email. Rates varied based largely on factors such as exposure, loss history and geography, he said. Rates declined 15% to 25% overall, with some reductions exceeding expectations, said Chris Dittman, Minneapolis-based executive managing director and Florida practice leader in Aon’s reinsurance solutions division. “There are definitely layers that are down more than I thought they would be,” he said. In a June 1 report , Howden Re said the supply-demand balance had shifted “decisively” in cedents’ favor and that rate decreases reached as much as 25%. Placements were generally completed early and with few surprises, Mr. Dittman said, describing the market as “orderly.” “We had an increased demand number of $5 billion to $7 billion and there was ample supply to fill that up,” he said. Guy Carpenter said demand rose about 12%, easily absorbed by expanded reinsurer appetite. For the first time in several years, negotiations extended beyond pricing to include structural changes and broader coverage discussions, including aggregates. “We are seeing renewed conversations around structure,” said Mr. Schwebach. “We’re also seeing a renewed interest and renewed capacity for aggregate covers.” There are “conversations around the edges regarding structure,” Mr. Fuller said. “I think something that we’ll continue to see buyers push for is frequency protection covers.” Such coverages are “slowly coming back into the market, but I would say it’s not something for which the market is yet fully meeting the demand,” he said. “There were certain cedents that did push structure,” Mr. Dittman said. 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