Cyber Reinsurance Market Sees Competitive Surge In 2026

The start of 2026 has brought a flurry of activity and notable changes across the reinsurance and insurance sectors, with cyber reinsurance renewals and policy updates from major players setting the tone for the year ahead. Buyers of cyber reinsurance entered the early 2026 renewal season with a distinct advantage, buoyed by robust supply dynamics and a competitive marketplace, according to a January 19, 2026 report by Howden Re. This environment, reminiscent of 2025, was shaped by a manageable loss landscape and the persistent enthusiasm of reinsurers eager to deploy capital.

Despite a year marked by several high-profile cyberattacks and even some systemic events, the financial repercussions in 2025 were not significant enough to alter the prevailing pricing sentiment. In other words, while the headlines may have been dramatic, the actual payouts did not rattle the industry’s confidence. Excess capacity and a strong appetite from reinsurers remained firmly in favor of cedents—the insurance companies seeking to transfer risk to the reinsurance market—as they approached the 2026 renewals.

Luke Foord-Kelcey, global head of cyber at Howden Re, summed up the situation succinctly: “As the cyber market enters 2026, plentiful capacity and strong reinsurer appetite remain to the cedents’ advantage, manifesting in favorable terms and greater structural flexibility at renewals.” According to Howden Re, cedents who could demonstrate a disciplined approach to underwriting and articulate thoughtful growth plans were especially well received. Foord-Kelcey emphasized, “Cedents that could demonstrate considered growth plans alongside disciplined underwriting – and an ability to stay ahead of an evolving threat landscape – were best received.”

The supply side of the cyber reinsurance market continued to experience pressure from new entrants. Notably, nine reinsurers entered the market on January 1, 2025, collectively bringing an additional US$250 million in new capacity. However, most of these new players fell short of their deployment targets last year. Rather than retreating, they have reloaded and are back for 2026, further contributing to the abundant capacity and keeping terms highly competitive for buyers.

This dynamic is not just a short-term blip but reflects broader optimism about the future of the cyber insurance market. Gallagher’s 2026 Cyber Insurance Market Outlook projects that the global market could balloon to between US$30 billion and US$50 billion by 2030. That’s a steep climb from the estimated US$16 billion to US$20 billion in 2025, signaling expectations of continued growth and relevance for cyber coverage as digital threats evolve.

One tangible benefit for buyers during the early 2026 renewals was an uptick in ceding commissions on quota share business. These commissions increased by 1% to 1.5% for most buyers, following a trend of 3% to 4% increases over the previous two years. Most now sit comfortably in the mid-30s percentage range—a level Howden Re believes will likely stabilize barring any deterioration in the loss environment. In other words, unless the industry is hit by a wave of costly cyber claims, these favorable commission rates are expected to hold steady.

Another area where buyers found relief was in global stop-loss pricing. After a loss-free year in the excess of loss market, prices dropped by a significant 15% to 20%. Interestingly, these declines were even sharper in international markets compared to the United States, reflecting both the underlying performance of those markets and their perceived growth potential.

But it wasn’t just about price; buyers also demonstrated a growing interest in optimizing their portfolios at a higher level. Insurers explored ways to monetize the most profitable segments of their books while achieving capital relief—a move that led to the execution of new and innovative structures. These included aggregate of event solutions, variable quota share arrangements, and per risk excess of loss solutions, all designed to help insurers manage risk more effectively and strategically.

The flurry of activity in cyber reinsurance was not the only noteworthy development in the insurance sector this January. On January 19, 2026, Skuld, a well-known marine insurer, published amendments to its Owners’ Fixed P&I (Protection and Indemnity) Terms and Conditions for the policy year 2026/27. The updated Terms and Conditions were released alongside a circular detailing the changes, providing policyholders and industry observers with insight into the evolving landscape of marine insurance.

While the specifics of the amendments were not detailed in the initial announcement, the publication of new terms and conditions is a significant event for Skuld’s clients. Such updates typically reflect shifts in regulatory requirements, market dynamics, or lessons learned from recent claims experiences. For shipowners and operators, staying abreast of these changes is paramount, as P&I coverage is a cornerstone of risk management in maritime operations.

The timing of Skuld’s announcement—coinciding with the broader renewal season in the insurance and reinsurance sectors—underscores the interconnectedness of global risk markets. As insurers and reinsurers adjust their terms, structures, and pricing, clients must adapt accordingly, reviewing their own risk strategies and coverage needs.

Returning to the cyber sector, the optimism expressed by Howden Re and Gallagher is tempered by a clear-eyed view of the threat landscape. While 2025 may have been manageable in terms of losses, the frequency and sophistication of cyberattacks continue to rise. The industry’s ability to stay ahead of these threats, through disciplined underwriting and innovative risk transfer solutions, will be tested in the years to come.

For now, however, the mood among buyers is buoyant. With plentiful supply, strong competition among reinsurers, and innovative new structures on offer, the early 2026 renewals have delivered a rare combination of favorable terms and strategic flexibility. As one industry observer put it, “It’s not often you see this much capacity chasing risk, especially in a sector as dynamic and challenging as cyber.”

Looking ahead, all eyes will be on how the market responds to the inevitable shocks and surprises that the digital era seems to deliver with increasing regularity. Will the favorable conditions persist, or will a major event shift the balance once again? Only time will tell. For now, both cyber and marine insurers are setting their course for 2026 with renewed confidence and a keen eye on the evolving risk horizon.