Reinsurance Rates Keep Falling Even as Iran Closes the Strait of Hormuz—Here's Why
The reinsurance market just pulled off something weird: rates kept falling even as Iran shut down one of the world's most critical shipping lanes. Here's what that tells us about capital, competition, and how insulated the property-cat market really is.
⚡ Key Takeaways
- Reinsurance rates continued softening at April renewals despite Iran closing the Strait of Hormuz—property-catastrophe and specialty lines operate on different pricing logic 𝕏
- Excess reinsurer capital, benign catastrophe losses, and aggressive ILS competition created a soft market that didn't account for geopolitical tail risk 𝕏
- The real danger isn't immediate war losses—it's sustained energy shocks causing inflation that could squeeze reinsurance capital across all lines later in 2026 𝕏
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Originally reported by Insurance Journal
