Reinsurance, which is a type of insurance that covers insurance companies, is expected to become cheaper in 2027 due to claims being less costly than expected so far. This expectation comes from ongoing annual negotiations about premium amounts and contract terms, which are currently taking place in Monaco until September 9. Marc-Philippe Juilliard, an analyst at S&P, noted that reinsurers are still showing strong profitability and solvency, and their credit ratings are expected to remain stable. As a result, reinsurance is likely to become increasingly affordable. Reinsurance prices are determined annually based on the number and cost of claims from the previous year. If reinsurers pay out large sums to their clients, they typically raise prices the following year, and if claims are low, they may lower them. In 2023, after several years of expensive climate-related claims, reinsurers had increased their prices and tightened contract terms to regain profitability. This recovery was evident in the semi-annual results of major reinsurers, five of the six largest being based in Europe. In the first half of 2026, Swiss Re reported a profit of 2.4 billion euros, while Hannover Re made 1.4 billion euros. The French reinsurer Scor emphasized that the terms and conditions of contracts would be as important as the prices during negotiations, and the company would remain firm in its stance, according to its general director, Thierry Léger, during a press conference in Monaco. Industry insiders predict that insurers will push for lower reinsurance prices during the upcoming negotiations. Manuel Arrivé from Fitch noted that natural disaster losses have been below budget for several semesters, contributing to the expected price decrease. Swiss Re reported that global damages from natural disasters in the first half of 2026 were 42 billion dollars, 16% less than the average over the last ten years. However, competition among reinsurers is a key driver of this price decrease. Despite these trends, the outlook for the reinsurance sector may change. Fitch has warned of a potential "deterioration of the outlook" for the global reinsurance industry in 2027. In response, Munich Re, which reported a net profit of 2.2 billion euros in the second quarter, has lowered its revenue forecast for 2026. Stefan Golling, general director of Munich Re's non-life division, noted that the company's pricing cycle is more flexible due to a diversified portfolio that includes more stable segments beyond natural disasters. He also pointed out that different regions experience varying phases of the cycle within the natural disaster business. The year is not yet over, and if expensive disasters occur in the second half of 2026, the current balance of power between insurers and reinsurers could shift. Hurricanes, which are a major concern for reinsurers, have just begun their season in the United States, according to Alexis Valleron of the Association of French Reinsurance Professionals (Apref), who highlighted this during a press briefing.