Reinsurance Pricing Pressure to Persist Through 2027 as Howden Re's Novark Signals ILS Maturation

By The Reinsurance Daily Editorial · September 7, 2026

Reinsurance Pricing Pressure to Persist Through 2027 as Howden Re's Novark Signals ILS Maturation

LGT Advocates for Complementary View of Cat Bonds and Private Reinsurance

Christian Bruns of LGT ILS Partners argues that institutional investors should not treat catastrophe bonds and private reinsurance (collateralized re) as interchangeable or competing assets. The firm posits that the two instruments serve different functions within both a cedent's risk transfer strategy and an investor's portfolio. Cat bonds offer liquidity and transparency, while private reinsurance provides opportunities for more customized, albeit less liquid, risk assumption. This perspective frames the Insurance-Linked Securities market not as a monolith but as a segmented space requiring distinct analytical approaches for its various components.

Howden Re Launches Novark to Modernize ILS Administration

Howden Re has launched Novark, a new entity designed to provide modernized infrastructure and administration services for the Insurance-Linked Securities (ILS) market. The initiative aims to streamline insurance management and securities administration, addressing operational inefficiencies that have historically created friction for capital market investors entering the reinsurance space. Novark will operate as a distinct service provider, signaling Howden Re's strategic intent to build out the core infrastructure supporting alternative capital deployment in the sector, rather than solely focusing on broking transactions.

SCOR Reaffirms Commitment to Third-Party Capital

SCOR CEO Thierry Léger confirmed that third-party capital remains an attractive and integral part of the reinsurer's capital strategy. This approach allows SCOR to write more business, manage volatility, and generate fee income. The company actively utilizes its Irish-domiciled special purpose insurer, Atlas Re, for this purpose. A recent example is the Atlas Gotland Re DAC (Series 2024-1) catastrophe bond, which provided $75 million of retrocessional reinsurance for named storms and earthquakes in the US and Canada. Léger’s comments underscore that major carriers see ILS as a permanent tool for capital optimization, not just a tactical capacity source.

Guy Carpenter Strengthens Healthcare Team With BMS Hire; CRC Expands

Guy Carpenter has appointed John Ciak as a Managing Director in its Healthcare and Life Sciences Specialty Practice. Ciak joins from BMS Group, where he was an executive vice president, and his move signals an intensified focus on specialized talent within the medical professional liability sector. This high-level transfer comes as brokers build out deep expertise to handle complex risks. Separately, CRC Specialty announced multiple hires across its underwriting and brokerage teams. CRC's parent, Truist Insurance Holdings, is the world’s 7th largest insurance broker with reported revenues of $31.7B in 2025, and its continued investment in talent is aimed at capturing market share in programs exceeding $350 million in premium.

Viewpoint: Capital Influx to Suppress Global Reinsurance Pricing Through 2027

Analysis suggests that global reinsurance pricing will face sustained downward pressure through 2027, driven by a significant influx of capital. The market has already absorbed an estimated $42 billion of fresh capital post-Hurricane Ian, and total alternative capital is projected to swell past $50 billion. This, combined with traditional reinsurers holding approximately $20 billion in excess capital, creates a supply overhang that is eroding the hard market pricing achieved in 2023. While combined ratios are expected to remain healthy, likely below 85%, the increased competition will compress returns on equity.

This surplus is forecast to drive down property-catastrophe reinsurance pricing by as much as 10% in the next two renewal cycles, with casualty and specialty lines experiencing rate deceleration.

Cincinnati Insurance Appoints New Chief Claims Officer

The Cincinnati Insurance Companies announced that Chief Claims Officer Eric N. Schambow will retire at the end of the year. He will be succeeded by Stephen A. McMillan, who is currently Senior Vice President of Claims. The transition marks a significant leadership change within a key operational area for the carrier. McMillan will assume responsibility for a division that manages over $2 billion in annual claims payments. The company's focus on claims management has been a factor in its financial performance, including a recently reported commercial lines expense ratio of 40.7%.

Key Takeaways

• SCOR's use of its $75M Atlas cat bond (Sec 3) is a direct capital management response to the market conditions outlined in the pricing viewpoint (Sec 5), where a $20 billion capital surplus is pressuring reinsurer margins and forcing carriers to optimize their cost of capital.
• Howden Re's launch of the Novark ILS platform (Sec 2) provides the specialized infrastructure that supports LGT's thesis (Sec 1) that cat bonds and private reinsurance are maturing into distinct, complementary asset classes requiring sophisticated, separate management.
• With reinsurance pricing projected to decline by up to 10% in upcoming renewals (Sec 5), underwriters should resist locking in multi-year deals at current terms, as cedents will likely have access to more favorable capacity in 12-24 months.
• The leadership transition at Cincinnati Insurance's claims division (Sec 6), which handles over $2 billion in annual claims, introduces uncertainty for its reinsurers. A new chief could alter reserving philosophy or litigation strategy, directly impacting loss development on treaties covering its book.

Sources

Investors should not view cat bonds and private reinsurance as competing asset classes: Bruns, LGT — artemis.bm
Howden Re launches Novark, to modernise ILS infrastructure, insurance management, securities admin — artemis.bm
Third-party capital remains an attractive source of capital for SCOR: CEO Léger — artemis.bm
People Moves: Ciak Joins Guy Carpenter’s Healthcare Team From BMS Group; CRC Specialty Makes Hires Across Underwriting and Brokerage Teams — insurancejournal.com
Viewpoint: Global Reinsurance Pricing to Remain Under Pressure Through 2027 — insurancejournal.com
People Moves: Cincinnati Insurance Chief Claims Officer Schambow to Retire, McMillan to Assume Responsibilities — insurancejournal.com