The volume of reinsurance claims will likely trend upwards, especially from natural catastrophes, with reinsurers facing margin pressure due to both increased loss activity and softer market conditions. The sector will remain profitable, but with heightened volatility and a greater focus on risk selection and capital management. At the same time, we expect to see accelerated adoption of parametric risk transfer solutions within reinsurance programmes as a way for reinsurers, and cedents, to better manage the evolving risk landscape.