Howden Re’s Cyber outlook at 1.1.2026
Similar to conditions seen in 2025, buyers of cyber reinsurance benefitted from favourable supply dynamics for early 2026 renewals, supported by strong competition and a manageable loss environment. Despite several high-profile attacks on individual insureds and a number of systemic events, financial impacts have not been material enough to shift pricing sentiment.
Luke Foord-Kelcey, Global Head of Cyber, Howden Re commented: “As the cyber market enters 2026, plentiful capacity and strong reinsurer appetite remain to the cedents’ advantage, manifesting in favourable terms and greater structural flexibility at renewals. Cedents that could demonstrate considered growth plans alongside disciplined underwriting – and an ability to stay ahead of an evolving threat landscape – were best received.”
Of the nine new reinsurers that entered the market at 1 January 2025, bringing US$250 million of new capacity, most did not meet their deployment targets and reloaded for 2026. This has further contributed to abundant capacity and competitive terms.
Strong profitability on excess of loss business and continued appetite from reinsurers have counteracted thinning margins in quota share, with reinsurers attracted to the long-term growth opportunity presented by cyber reinsurance. Together, these factors tilted supply demand dynamics further in favour of cedents.
Ceding commissions on quota share business moved up by 1% to 1.5% for most buyers. Following increases of 3% to 4% since 2022- 23, most commission percentages have now reached the mid-30s range, where they are likely to stabilise unless the loss environment deteriorates. A loss-free year in the excess of loss market pushed global stop-loss pricing down by 15% to 20%, with sharper declines internationally than in the US, reflecting underlying performance and growth potential.
Buyers showed increased interest in portfolio-level optimisation, exploring ways to monetise profitable parts of their books whilst still achieving capital relief. This led to the execution of new structures, including aggregate of event, variable quota share and per risk excess of loss solutions.