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Global professional services firm Aon says reinsurers were increasingly willing to offer more flexible structures and broader coverage options during the US property mid-year 2026 renewals, allowing insurers to enhance protection and make greater use of tailored reinsurance solutions as market conditions remained favourable for buyers.
In its Reinsurance Market Dynamics report covering the mid-year 2026 renewals, Aon said reinsurers demonstrated a broad appetite for expanded coverages and more flexible programme structures.
The company said many insurers capitalised on improved pricing conditions by reinvesting premium savings into additional catastrophe protection, purchasing higher limits at the top of programmes as well as frequency and aggregate covers.
According to Aon, reinsurers also accommodated strong demand for wildfire protection following California’s Palisades and Eaton fires in 2025, with wildfire continuing to attract greater interest as understanding of the risk develops.
Aon said global demand for property catastrophe reinsurance increased by more than 10% at the renewals, driven by higher catastrophe limits, broader product purchases and a significant increase in demand from Florida-based insurers.
The global broking group said many insurers increased their use of reinsurance to support growth strategies while transferring more risk to higher programme layers.
Although net retentions, which increased following the 2023 market reset, remained broadly unchanged, Aon said insurers continued to examine more flexible structures to improve earnings protection and manage frequency risk. The company also highlighted its continued product development, including high-efficiency frequency catastrophe covers and other targeted solutions.
According to Aon, reinsurance capacity remained abundant, with supply from both traditional reinsurers and third-party capital comfortably meeting increased demand.
The company said growing appetite from established reinsurers, combined with continued support from insurance-linked securities investors, intensified competition and resulted in price reductions across almost all placements, including for some insurers with recent loss activity. Aon also reported continued backing for managing general agents (MGAs), extending beyond established businesses to include newer entrants.
Aon said interest in proportional reinsurance continued to strengthen following the 1 January and 1 April renewals, with a wider range of insurers expected to assess proportional arrangements over the coming year.
The report also said improved data quality, favourable market conditions and increasingly sophisticated analytics, including artificial intelligence, enabled Aon to arrange more customised and efficient reinsurance programmes. According to the company, insurers providing higher-quality underwriting information secured more tailored transactions and improved terms.
Aon added that buyers are placing greater emphasis on bespoke reinsurance products rather than price alone, while reinsurers have shown greater willingness to support innovative structures, including solutions designed to improve the efficiency of low-attaching catastrophe occurrence covers.
Aon said US insured catastrophe losses during the first half of 2026 were among the lowest since 2020. While several severe convective storm events each generated insured losses exceeding $1 billion, the company said overall losses from these events remained below the levels seen during recent record-setting years. Aon also noted that Winter Storm Fern, which struck in January, produced around $3.7 billion in insured losses, making it one of the costliest winter storms in US history.
Sarah Mumm, US Property Leader, Reinsurance, Aon, added: “As we move into 1/1 renewals, we see US property buyers shifting from simply taking advantage of softer pricing to using the market to re-engineer their protection. Those who pair stronger data and emerging AI-driven analytics with a willingness to embrace proportional and more bespoke structures will be best positioned to secure differentiated capacity, support new growth, and build programs that are more resilient to earnings volatility over the long term.”
The post Reinsurers expanded options, embraced flexible structures at US property mid-year renewals: Aon appeared first on ReinsuranceNe.ws.
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