Reinsurance markets are now showing more willingness to consider aggregate solutions for frequency losses amid continued high demand.
The onset of the hard market in 2023 saw an upward shift in retentions which left primary carriers retaining a much higher level of volatility than their reinsurance counterparts.
As the market starts to soften, brokers are reporting increasing willingness among reinsurers to provide solutions for frequency losses.
In a report on Friday, Aon said aggregate cover purchasing has risen by 50% in 2025 as reinsurers become more open to lower retention level exposure.
The broker said it expects the January renewal will see a wider array of structures, including aggregate, frequency and earnings protection covers, all of which have become more accessible over the past year.
Gallagher Re chief commercial officer Lara Mowery said during the broker’s pre-Monte Carlo briefing there is more engagement from reinsurers around offering aggregate covers
“However, placements for this type of coverage are still not easy, and from a structural perspective, we are not back to the very low-lying agg covers previously seen,” she said.
“But we have had success placing a number of sizeable high-profile aggs recently, and we do expect this to continue into January 1.”
Mowery said there have not been broad core cat program attachment point reductions after the significant increases of the previous couple of years, but said reinsurers were now showing “greater flexibility to provide supplemental solutions in the right circumstances”.
David Duffy, president of global clients at Guy Carpenter, also indicated that the 2026 renewals season is expected to see increased demand for frequency cat protection.
While catastrophe retentions have remained generally consistent with 2024 levels in currency terms, Duffy said that inflation and underlying property values have resulted in an increase in the probability of attaching most catastrophe programs.
The moderation of risk-adjusted pricing during 2025 has seen pronounced reductions seen in more risk-remote layers, with Duffy adding that competition for share allocations on client programs has helped to produce more consistency in negotiated contract coverage across reinsurer panels.
“Subject to normal loss activity for the balance of the year, we currently expect the property reinsurance market in 2026 to continue to be guided by the trends observed in 2025,” he said.
Duffy said that absorbing the financial volatility associated with the frequency and severity of cat losses continues to be a “primary challenge”, adding: “During 2025, we saw a growing willingness on the part of reinsurers to provide frequency cat protection to insurers to meet this challenge.”
“In 2026, we expect to see increased demand from insurers for coverage to protect earnings against cat frequency. Reinsurers’ ability to meet client coverage needs in this area will be an important differentiator for reinsurers seeking to grow in a competitive market environment.”