S&P expects reinsurance prices to decline further in 2027 due to excess capacity

S&P expects reinsurance prices to decline further in 2027 due to ample capacity available from traditional reinsurers and alternative capital providers. As a result, underwriting performance and overall profitability are likely to decline over the 2026-2027 period.

While geopolitical instability, social inflation and exposure to natural catastrophes remain key risks, S&P expects the sector to remain resilient through 2026-2027.

S&P's AI survey suggests that reinsurers are successfully adopting AI, with current use cases concentrated primarily in support functions, process automation and risk management.