The global reinsurance market has maintained its "hardening" trend since 2023 — and 2026 is no exception. Rising catastrophe losses, geopolitical uncertainty and sustained inflation are directly affecting the reinsurance terms available to Turkish insurance companies.
What does a hardening market mean?
- Reinsurance premiums rise
- Capacity (risk appetite) contracts
- Deductibles increase
- Exclusions widen — "pandemic excluded", "cyber excluded" and similar carve-outs become standard
- Coverage definitions narrow
Global drivers
- Climate-driven catastrophe frequency — European flood losses, consecutive severe US hurricane seasons
- Inflation — claims settlement amounts are rising as construction, medical and legal costs increase
- Retrocession contraction — the upper layer of capacity, where reinsurers themselves cede risk, has tightened
Turkey's market dynamics
Turkey occupies a distinctive position in the global reinsurance market. Earthquake exposure is high, but local accumulation capacity is limited. The trends observed in the 2024–2026 period:
- Treaty renewals have seen premium increases of 15–30%
- Earthquake Cat XL capacity requires access to multiple markets and intermediaries
- London, Bermuda and Asian market combinations have become the standard programme structure
- Turkish insurance companies are being required to retain larger shares of their own risk
Our role as broker
- Alternative market exploration (Lloyd's of London, European markets, Bermuda, Singapore)
- Risk presentation quality — a well-explained risk attracts better pricing
- Layering strategies — structuring coverage across multiple capacity providers
- Guidance on captive structures
- Parametric product options
A poorly prepared risk submission in a hardening market can double your premium. A well-prepared one creates capacity.
For reinsurance brokerage support — whether for a local insurance company or a captive structure — review our reinsurance services or schedule a meeting with our team.