Reinsurance buyers in the Middle East secured significant risk-adjusted rate reductions during the July 2026 renewals, as abundant capacity and strong competition accelerate a softening market across the EMEA region.
The Gallagher Re July 2026 First View renewal report reveals that reinsurance buyers reached a period where conditions shifted further in their favour, allowing cedents to secure risk-adjusted rate reductions across numerous geographies and classes.
This was also the case in the EMEA, where cedants successfully leveraged the region’s conditions to obtain better terms and conditions from reinsurers with increased appetite.
The findings from Gallagher Re highlight that pro rata commissions have generally remained stable or seen modest increases of up to 2%. Meanwhile, loss-free risk programs experienced notable risk-adjusted rate reductions between 10% and 20%, though loss-affected accounts saw slight upward adjustments ranging from 0% to 5%.
In the catastrophe space, loss-free renewals secured significant decreases of 15% to 25%, whereas programs impacted by losses faced more modest shifts between 0% and 5%.
The report also noted that in the UAE, the March flood events have introduced some underwriting caution but have not materially disrupted overall market dynamics.
While loss-affected programs have been subject to greater scrutiny, particularly around flood exposure, modelling, and data quality, capacity has remained available.
At the same time, reinsurers are showing a strong appetite for loss-free accounts, which continue to benefit from competitive pricing and available capacity.
Competition in Saudi Arabia (KSA) has been especially intense, particularly regarding proportional programs.
As the market continues to draw both regional and international reinsurers focused on expansion, there has been a resulting increase in commissions and capacities provided to cedants, which has placed downward pressure on pricing.
According to the report, negotiations regarding overall pricing, commissions, and capacities have been active, with reinsurers showing the flexibility necessary to protect their market share.
Consistent with broader regional patterns, other Gulf markets remain highly competitive.
“Overall, the market has softened further, with reinsurance buyers becoming increasingly attentive to this trend and strategically negotiating with reinsurers to secure the best possible outcomes,” analysts concluded.
