Insights From 1st Quarter Renewals
Maksure Risk Solutions has noted that both southern and eastern African insurance and reinsurance markets witnessed continued softening at the April 1, 2026, reinsurance renewals, despite ongoing conflict in the Middle East threats to drive significant losses for marine and various specialty lines of business.
The continued price reductions in key southern and eastern African markets at 1/4 renewal has been driven largely by macro trends with a rise in capital leading to excess capacity available in the market. Global low catastrophe activity together with increased capacity flow in the form of MGAs and sidecars has been the driver of the softer market.
In South Africa, the largest African market with major public and private corporate accounts which renew on April 1, Maksure witnessed double-digit rate decreases in property, casualty and specialty lines. Although in most programmes the structures were stable, there were pockets in which other programmes shifted completely to correct structures that had been imposed in the hard market cycle. Many renewals were finalised ahead of the planed schedule giving contract certainty to insureds.
Elsewhere in Africa, for countries such as Zambia, Botswana, Malawi, South Sudan and Tanzania, Maksure also observed further market softening with double-digit rate reductions on loss-free accounts, while terms and conditions also remained largely stable in these countries. Accounts that had suffered losses received moderate premium increases to reduce reinsurer payback period.
Market softening was also felt on treaty renewals.
“Treaty reinsurance market is demonstrating robust capacity and competitive pricing, particularly in South Africa and surrounding countries. Despite geopolitical uncertainties, reinsurers are keen to support clients with innovative solutions, ensuring stability and continuity in a rapidly evolving environment,” said Edgar Guilundo, Head: Treaty & Facultative.
April 1 was the first renewal season of the year since the onset of the US and Israel’s conflict with Iran, we appreciate that regional and international reinsurers have demonstrated a strong commitment to maintain coverage despite the complexities posed by ongoing conflicts. Our focus remains on protecting clients’ interests and ensuring that no significant exclusions are placed on renewals, reflecting the resilience and adaptability of the market, added Mr. Guilundo.
As more capacity is entering our markets, both from a reinsurer and reinsurance broker perspective, the role of a treaty broker is changing to be that of a strategic advisor, offering both portfolio insights to enable structure fit for purpose treaties as well as assisting clients grow through product and market development.
About Maksure Risk Solutions
Maksure Risk Solutions is an Afro-Global independent specialist insurance and reinsurance broker with business footprint in Africa, Asia, East & Western Europe, South America and the Caribbean. We provide innovative and tailor-made risk solutions in Insurance and Reinsurance as well as Risk Financing and Actuarial Consulting geared towards capital management and strengthening our client’s balance sheet. Maksure is also one of the major players in Captive Management (Establishment & Management) in South Africa, Mauritius, Bermuda and various other jurisdictions. We have access into the Lloyds of London with a deep understanding of African markets. Our global nature ensures that our clients access quality capacity as well as some of the world’s latest thinking and solutions.whatsa
