Reinsurance renewal rates likely to see a drop of up to 10% in FY26

The reinsurance renewal rates are likely to drop by up to 10 per cent in financial year 2026 (FY26), due to higher reinsurance capacity and better loss experience of the insurers, sources said.

 

However, the new norms on collaterals for the cross-border reinsurers remain a key concern in this renewal session.

 

Last year, the reinsurance rates saw a marginal increase of around 5 per cent after adjusting for risk, which is expected to see up to 10 per cent drop this year. 

During the April reinsurance renewals, Indian insurance companies transfer a portion of their risk portfolios to reinsurers by