US cyber reinsurance rates fell around 32% during the April 1 renewals, impacted by a surge in excess capacity, which combined with a stable performance and low non-proportional pricing, has fostered the development of tailored solutions for cyber portfolios, according to Gallagher Re\u2019s 1st View April renewal report<\/p>\n
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While primary rates for most US cyber carriers remain flat or negative, the reinsurance broker notes that lead insurers in the large corporates and the small and medium-sized enterprise (SME) sector are beginning to mark a shift, with rates expected to stabilise and potentially increase in late 2026.<\/p>\n
In the report, James Dominguez, Senior Vice President \u2013 Cyber Reinsurance Broker, North America, noted that penetration rates are increasing within the SME sector.<\/p>\n
This indicates that aggregate deployed limits are up year-over-year, a growth largely offset by rate reductions. Some rate stabilising should lead to GWP growth, it was stated.<\/p>\n
Moreover, reinsurers maintain a strong appetite for cyber risk, supported by a continued surplus of capacity to meet demand. Average market cessions have remained stable year-on-year, with Gallagher Re observing a 39% average through the first quarter renewals, down slightly from 40% in 2025.<\/p>\n
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<\/a><\/div>\n<\/div>\nReinsurance pricing has softened due to an excess of capacity, a trend the firm expects to continue through 2026. Non-proportional placements have seen a particularly significant average risk-adjusted decrease of roughly 32%, according to Gallagher Re\u2019s analysis.<\/p>\n
\u201cThe combination of abundant reinsurance capacity, stable performance, and low non-proportional pricing has driven the development of bespoke solutions for cyber portfolios,\u201d Dominguez stated.<\/p>\n
The market remains cautious due to geopolitical tensions in the Middle East. While early 2026 has experienced a relative lack of significant cyber events, compared to several high-profile events in 2025, the conflict in the region has become a focal point for risk managers.<\/p>\n
\u201cWe may yet see an impact on the market from recent geopolitical events in the Middle East. As a result it remains uncertain how the US cyber market will grow this year,\u201d said Dominguez.<\/p>\n
Additionally, the Stryker wiperware incident has raised significant concerns regarding US contract war exclusions and their potential implications.<\/p>\n
As a result, Gallagher Re emphasises that North American carriers and reinsurers are closely monitoring the US-Iran conflict and its potential impact on insurance policies, particularly regarding war exclusions and potential \u201cNation State\u201d activities.<\/p>\n
While the most significant movement for US Cyber was a 32% decrease in catastrophe loss-free pricing, pro rata commissions saw a modest 1% increase.<\/p>\n
Gallagher\u2019s report also covers the Japanese cyber sector, witch continues to grow at 10% year-on-year, driven by SME and personal segments, with stable original rates and increasing demand for risks XL programmes.<\/p>\n
However, Osamu Asari, Executive Director, International Cyber, noted that \u201cthe pace of growth has slowed compared to previous years.\u201d<\/p>\n
Although there were a few notable individual losses over the last year, such as the Asahi Group ransomware incident in September 2025, the overall effect on treaty results has been minor.<\/p>\n
Unlike other mature markets, Japan\u2019s original rates have been consistent in recent years and are anticipated to stay that way in the upcoming year, according to the broker.<\/p>\n
The post US cyber rates drop 32% at April 1, bespoke solutions surge amid ample reinsurance capacity: Gallagher Re<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" US cyber reinsurance rates fell around 32% during the April 1 renewals, impacted by a surge in excess capacity, which combined with a stable performance and low non-proportional pricing, has fostered the development of tailored solutions for cyber portfolios, according…<\/p>\n","protected":false},"author":1,"featured_media":1055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts\/1618"}],"collection":[{"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/comments?post=1618"}],"version-history":[{"count":3,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts\/1618\/revisions"}],"predecessor-version":[{"id":1622,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts\/1618\/revisions\/1622"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/media\/1055"}],"wp:attachment":[{"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/media?parent=1618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/categories?post=1618"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/tags?post=1618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}