Global Facultative Reinsurance Trends Report 2026

Managing the changing market cycle

The world may feel like a riskier place in 2026, but increasing instability has done little to slow the softening of insurance and reinsurance markets.

An abundance of capital, combined with high profitability over the last two years, have led to a surge in available capacity in many lines of business, with even challenged risks securing double digit rate reductions.

In our second facultative reinsurance survey, we asked 380 leading insurers about how they are navigating these trends. What do they see as their biggest objectives and opportunities? Are there any emerging risks or challenges that might flip the market? And what role does facultative play in supporting their strategies?

Our findings suggest that as insurers pursue growth aggressively, many are drawing on facultative reinsurance both to provide extra capacity and manage the associated risks.

But there is rising concern about factors such as geopolitical tensions, cybercrime and AI, which could impact insurer strategies and increase their exposures to large scale losses and long tail liabilities.

Key findings

• Growth and global expansion are top priorities: 56% of respondents said global expansion was among their greatest opportunities in the next two years, up from 39% in 2024. In a rapidly softening market, many insurers are writing business in countries outside of their normal catchment to drive growth.
• Boosting capacity is the no. 1 reason to buy: 52% named capital management among their biggest reasons to buy facultative reinsurance, up from 44% in 2024. Insurers need to deploy the reserves accumulated during the hard market and are using facultative strategically to help them do that.
• Emerging risks are in sharper focus: 57% cited geopolitics among the emerging risks they are most concerned about, up from 52%, while 54% said cyber, up from 24%, and 40% climate, up from 30%. A major systemic event in any of these areas could be enough to change the cycle back to harder conditions.
• Majority intend to buy more facultative reinsurance: 60% intend to buy more facultative reinsurance over the next two years, compared with just 13% who expect to buy less. This suggests that facultative reinsurance remains a key tool for insurers in achieving their objectives across all stages of the market cycle.
• Facultative is a key element of insurer strategies: 82% saw facultative as a key part of their strategies for managing risk, capacity, capital and appetite, while only 22% said they used facultative as a last resort, down from 28% in our previous survey.

What you'll learn from this report

Gain a clear view of how insurers are navigating the rapidly softening insurance and reinsurance market in 2026 and how facultative reinsurance is evolving from a defensive tool into a strategic lever for growth.

The report covers:

• Where insurers see growth opportunities, including global expansion, new markets and risk areas, and increased capacity.
• How facultative reinsurance is supporting growth, capital deployment, risk appetite and exposure management.
• Which emerging risks could reshape the market, from geopolitical tensions and cyber threats to climate volatility, AI and long-tail liabilities.
• How demand is changing across key lines, including property, casualty, cyber, construction and environmental liability.
• Regional market dynamics, with insights from North America, Europe and the UK, Asia-Pacific, Latin America and CEEMEA.
• What insurers are planning next, including why 60% intend to increase their use of facultative reinsurance over the next two years.
• How facultative can help insurers stay agile, balancing retention and risk transfer as market conditions and strategic priorities change.

Why download this report?

The insurance market is changing quickly. As abundant capital and falling rates intensify competition, insurers are pursuing growth while facing an increasingly complex landscape of geopolitical, cyber, climate and emerging technology risks.

Based on the views of 380 leading insurers, this report provides timely insight into how the market is evolving and what these changes mean for facultative reinsurance.

Download the report to understand:

• The priorities shaping insurer strategies in 2026 — and where growth is happening.
• The changing role of facultative reinsurance as insurers seek capacity, manage capital and navigate new risks.
• The risks that could disrupt the current soft market, and what insurers are watching most closely.
• The opportunities and challenges across different regions and lines of business.
• How leading insurers are adapting their reinsurance strategies to balance growth with volatility and future loss scenarios.

Whether you are assessing market opportunities, planning your reinsurance strategy or looking to understand where the market is heading, this report provides practical insight into current market trends, emerging risks and the evolving role of facultative reinsurance.

Complete the short form below to access the 2026 Global Facultative Reinsurance Trends Report.