According to Gallagher Re, the 1 January property-CAT reinsurance renewal season in Turkiye exhibited trends similar to those observed in Continental European renewals, with risk-adjusted decreases of 15% on average, and a significant oversubscription of capacity, particularly in top layers, Middle East Insurance Review reports.

Gallagher Re in its “First View—Options and Opportunities—January 2026” report covering market conditions in the reinsurance industry during this key renewal period said: “In many cases, oversubscription exceeded 150%, reaching as high as 200%. Retention levels remained largely unchanged, following two consecutive years of substantial increases”.

It is noted that the softening of the market was partly driven by some cedants completing the payback phase related to the 2023 Kahramanmaras earthquake. This accelerated payback period was a result of the sharp rise in both rates and capacity purchased by the market in the aftermath of the earthquake.

Demand for CAT XL capacity increased by over EUR 1 billion, bringing the total market capacity to approximately EUR 12 billion, including the Turkish Catastrophe Insurance Pool (TCIP). Despite the rate softening, nearly all markets involved in Turkish renewals either maintained or increased their written lines. There was limited influx of new capacity in the market with existing players able to absorb the increased capacity demand.

Quoting behaviour was reasonable with leading reinsurers willing to make commercial decisions aligned with the market dynamics in Turkiye and the wider softening environment in Continental Europe.

Per risk capacities and event limits have increased for nearly all cedants. Additionally, limits for both risk XLs covering retained portfolios and gross risk XLs have risen, with reinsurers meeting the increased demand. The shift from proportional to non-proportional treaties, which had been a notable trend over the past two years, has slowed markedly. Support for proportional treaties now appears sufficient, and the market seems to have reached a new equilibrium.

The abundance of traditional capacity has exerted considerable pressure on parametric products (e.g. “cat-in-a box” solutions). Many cedants either terminated their existing parametric contracts, or renewed them at significantly reduced rates, with discounts reaching up to 40% compared to the previous year, the source added.