Cyber reinsurance rates fell between 10% and 20% at July 2026 renewals, according to three cyber reinsurers and three reinsurance brokers, as abundant capacity and continued competition pushed prices lower across much of the market.
The July decline represents a continuation of the buyer-favorable trend that began at the January 1, 2026, renewals, when cyber aggregate excess-of-loss rates fell by 32%, according to Gallagher Re. The shift marks a sharp reversal from five years earlier, when global cyber reinsurance rates soared by up to 40% in July 2021, driven by significant claims activity that had strained the market.
Brokers reported pricing reductions of 15% to 20% were achievable on the best-performing programs, while reinsurers generally pegged rate declines at 10% to 15%. One reinsurer noted that reductions above 10% were largely being driven by less sustainable capacity entering the market, according to sources cited by The Insurer.
Competition has remained particularly intense for portfolios with significant international and small and medium-sized enterprise exposure, with two brokers saying those books continued to attract stronger pricing reductions because they were viewed as attractive diversifiers within reinsurers’ broader cyber portfolios.
Aggregate attachment points—the loss thresholds at which reinsurance coverage begins—continued to move lower during the renewal. Attachment points around 115% to 120% loss ratios were now common across many programs, while selected portfolios were able to secure protection attaching below 100%, reflecting growing reinsurer confidence in certain portfolios with strong underwriting performance and robust data quality.
A market bifurcation has emerged, with some reinsurers willing to attach lower and accept larger premium volumes while others are increasingly focusing on higher-attaching catastrophe risk where earnings volatility is lower. One broker noted that similar moves had occurred previously in the cyber market, with the market still divided over whether lower-attaching aggregate structures are being adequately compensated for the risk they assume.
Cyber retrocession—reinsurance purchased by reinsurers themselves—was softening faster than the underlying reinsurance market. Two brokers and two reinsurers said reductions of more than 20% were achievable in parts of the retrocession market, particularly for well-performing programs, with buyers able to take advantage of abundant capacity. The largest cyber retrocession placements currently being executed were around $300 million, with one broker estimating the market could comfortably absorb a $500 million placement if pricing was sufficient.
Sources
- The Insurer — Cyber reinsurance rate declines at July 2026 renewals, aggregate attachment points, market bifurcation, and retrocession trends
- Reuters / Insurance Journal — Historical comparison: July 2021 cyber reinsurance rate increases of up to 40%
- Beinsure / Gallagher Re — January 2026 cyber aggregate excess-of-loss rate decline of 32%
