OnRe Underwriting Commentary: 26 October 2026

As reinsurers and clients return to their desks following Baden-Baden, this week's news bulletins only add to the feeling of an awkward pause.

Insured losses in the first nine months of 2026 are reportedly at their lowest since 2019. However, this does not reflect an absence of catastrophe events, but rather the imbalance of reinsurance protection around the globe.

The 2026/27 El Niño event is ramping up to be one of the strongest on record, and savvy reinsurers should already be considering what this could mean for their exposures across different regions.

And it is not just weather events that the market should consider. Rumours suggest that the International Group of P&I Clubs may be contemplating significant rate increases following the delayed recognition of losses arising from the 2024 Baltimore bridge collapse. Meanwhile, reinsurers may be sitting pretty as improved SRCC (Strikes, Riots, and Civil Commotion) terms and conditions will likely shield them from significant losses arising from recent events in France.

Add inflationary pressures and ongoing geopolitical conflicts to this cassoulet of risk, and you'd expect underwriters to be sharpening their pencils, refining pricing models, and reassessing portfolio exposures.

Instead, attention may be turning towards recent market arrangements, some of which could appear contradictory to the need for stronger underwriting capabilities amidst an ever-changing risk environment.

I, for one, believe there are significant benefits to introducing new, capital-friendly structures into the reinsurance market. Whilst the current balance between supply and demand is contributing to softening rates across existing products, the industry's longer-term capital requirements are growing. Meeting latent demand and the needs of emerging industries, with their significant assets and liabilities, will require new sources of capital.

At OnRe, we will continue creating new avenues for capital to enter the reinsurance market, and we believe it is our responsibility to provide the education and guidance that support its long-term participation. Transparency is central to that work, and by keeping the underwriting challenges of this evolving risk environment at the forefront, we aim to give new capital a clear, underwriting-led path into the market.

Ben Fortune
‍Chief Underwriting Officer, OnRe