Marsh Re, a global reinsurance brokerage and capital solutions provider, has forecast that total capital dedicated to the global reinsurance market will reach approximately $705 billion by 2026. This represents a 6% increase from the previous year. The growth in capital is expected to provide significant liquidity and diversity for reinsurance companies, driving competition in the market.
According to Marsh Re's latest report on reinsurance renewals for 2027, the reinsurance market continues to benefit from record levels of available capital. This capital surge is notable given that the global reinsurance premium base declined by 7% in the first half of 2026. The report highlights that the total capital allocated to reinsurance has grown substantially, from $368 billion in 2013 to $663 billion in 2025, and is expected to reach $705 billion in 2026.
Marsh Re, previously known as Guy Carpenter before its rebranding in September 2026, is a leading global specialist in reinsurance broking, capital solutions, and risk management. The company has over 3,800 professionals across more than 70 offices worldwide, offering reinsurance, analytics, and capital advisory services to clients. The firm's expertise and extensive network position it well to analyze and forecast trends in the reinsurance market.
The expected growth in traditional capital is estimated to be around 6.5% in 2026, while alternative capital, which includes non-traditional financing tools and sources such as catastrophe bonds and insurance-linked securities, is anticipated to increase by 5.7%. Traditional capital refers to funds provided by reinsurance companies through their balance sheets, equity, and own financial resources to cover risks they reinsure.
The rise in available capital coincides with a challenging environment for the reinsurance market, characterized by evolving risks such as climate change, natural disasters, cyber threats, and geopolitical tensions. These changes necessitate the development of new products and solutions by reinsurers to address emerging risks. The abundance of capital is expected to provide clients with more options for securing appropriate protection.
The reinsurance market's growth in capital is driven by various factors, including increased investor interest and the development of new financial instruments. This expansion is crucial for supporting the insurance industry's capacity to manage and transfer risks. As the market continues to evolve, reinsurers are likely to focus on innovation and diversification to meet the changing needs of their clients.
The trends in the reinsurance market have significant implications for both reinsurers and their clients. With more capital available, reinsurers can offer more comprehensive coverage and competitive pricing, which can, in turn, influence the dynamics of the insurance market.
Key points
- Global reinsurance capital is expected to reach $705 billion by 2026.
- The reinsurance market has seen a 7% decline in premiums during the first half of 2026.
- Marsh Re forecasts a 6% increase in total reinsurance capital for 2026.
