2025 Monte Carlo Reinsurance Roundtable Highlights Market Discipline & AI Impact

At the 67th Rendez-Vous de Septembre in Monte Carlo, an executive roundtable hosted by Reinsurance News gathered industry leaders to discuss the current state and outlook of the reinsurance market heading into 2026. The panel highlighted that the market remains hard but shows signs of softening, with the U.S. experiencing inflationary pressures and increased claims costs, especially in homeowner and auto insurance sectors. Conditions such as California wildfires and litigation have contributed to market constraints, although overall capital levels and profitability remain strong across the sector.

The experts agreed that disciplined underwriting and increased rate actions taken by reinsurers in 2023 have supported favorable returns that beat the cost of capital, despite ongoing losses. Although the market is hard, opportunities for innovation and competitive dynamics persist, particularly as reinsurers and brokers seek to balance client demand with pricing strategies. Participants noted the sustained market hardening was partly due to limited new entrants and ongoing alternative capital inflows via insurance-linked securities (ILS), sidecars, and catastrophe bonds.

Casualty reinsurance remains challenging to forecast, with mixed sentiment about the cycle stage. While primary insurers show optimism, reinsurers continue to face pressures, creating space for growth in the ILS sector within casualty lines. The roundtable also focused on capital management, attachment points, and the increasing need for aggregate protections in light of growing insured losses from natural disasters.

Discussions extended to the impact of technology and AI on the reinsurance market, emphasizing the importance of integrating advanced tools with effective talent development and retention strategies. The role of managing general agents (MGAs) was also examined as part of evolving distribution channels and market innovation.

Overall, industry leaders underscored the need to find a balance between achieving robust earnings and meeting client requirements in a complex and evolving market. The 2025 Monte Carlo Rendez-Vous Executive Roundtable highlighted the sector's ongoing adjustments to maintain profitability and discipline amid shifting economic and risk landscapes.