As per reinsurance broker Howden Re, industry loss warranties (ILWs) are expected to return to more normalised growth in 2026, as the January 1st reinsurance renewals showed rates falling by 10% to 20%.
In its January 2026 reinsurance renewals report, the broker estimated that the ILW segment shrank in 2025 to around US$6 billion.
“After a prolonged period of growth and outperformance, 2025 marked a year of moderated demand for the ILW market as buyers recalibrated their wider purchasing strategies. Limit transacted fell by 10-15% to ~US$6 billion, driven primarily by a significant reduction in higher risk purchases (including state-weighted industry loss products priced at 20-30% gross rates on line),” Howden Re said.
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