Reinsurance markets adapt to rising catastrophe and cyber risks

The global reinsurance market is facing an evolving risk landscape characterized by increasing natural catastrophes and rapid technological shifts. Swiss Re reports that insured natural catastrophe losses are growing at an annual rate of 5–7%, driven by rising asset values and changing hazard patterns. The company notes that wildfire is the fastest-growing weather peril globally, with insured losses in Europe increasing by 8–11% annually in recent decades. Swiss Re models suggest insured losses could reach approximately USD 320 billion in a 2026 peak loss scenario.

To address rising climate-related losses, Marsh and the World Economic Forum are advocating for place-based resilience. Their report, ‘Addressing Insurability: A Playbook for Investing in Place-Based Resilience’, argues that protecting individual assets is insufficient. Instead, they suggest that improving infrastructure, supply chains, and community-level resilience is necessary to maintain the availability and affordability of insurance and reinsurance.

In the cyber sector, Marsh Re indicates that the market is shifting toward more tailored reinsurance structures. This evolution is driven by the impact of artificial intelligence on cyber threats. The mean time-to-exploit has decreased significantly from 745 days in 2020 to just hours in 2026. As a result, buyers are reassessing their net risk positions and seeking more specialized coverage to manage the increased speed and frequency of cyber threats.