Authors: Jason Alvarez Tom McGrath John Dawson
Recently, three major reinsurers have exited the US medical reinsurance market, signaling a significant shift but not a crisis. While these withdrawals may lead to some rate hardening, increased retentions and a need for insurers to reassess capital management strategies through 2026, reinsurance renewals for the remainder of the year are expected to remain manageable.
Overall, this shift represents a structural adjustment in the market rather than a cyclical one, with four anticipated key impacts that include:
- Greater pricing discipline
- Stronger focus on capital efficiency
- Move toward innovative reinsurance solutions
- Acceleration in alternative risk transfer strategies
These changes present both challenges and opportunities for insurers and reinsurers, requiring strategic adaptations to thrive in the evolving landscape. In this article, we'll provide detailed insights and recommendations to help market participants navigate and succeed in this new environment.
