On a knife-edge, but not a soft market: Lloyd’s Rachel Turk
January 26 2026 by Jon Guy
Despite widespread reports of a reduction in premium rates at the 1.1 renewals, Lloyd’s chief of market performance Rachel Turk does not believe that the industry is in a soft market.
The 1.1 renewals this year were primarily highlighted by a shift towards a softer, buyer-friendly market characterised by abundant capacity, increased competition, and double-digit price reductions in property catastrophe lines.
“I believe we have seen some softening, but we are not in a soft market,” Turk told the Fitch Ratings Insurance Insight event in London.
“I think we are on a knife-edge, but if we get a major cyber or natural catastrophe, for instance, things may well change.”
Turk praised the way in which the market was approaching the pricing cycle, and the discipline assured there would not be a return to the decile 10 strategy, where underperforming syndicates were forced to cut their underwriting appetite in difficult classes.
“The discipline I see is really strong,” Turk added. “The lessons of the past have been learned.
“We will not go back to the decile 10 as we can see the discipline in the market.”
Lloyd’s 2026 plan forecasts a gross written premium of GBP67.4 billion (US$90.93 billion) and a net combined ratio of 91.2%.
“This growth is coming from new entrants and structured solutions,” Turk added. “Growth is coming from those syndicates who rated as outperforming and good, so we are confident of the growth.
“The market is cyclical, and the long-term return in capital will be around the 2023-24 number. You have to believe that a return on capital of under 10% is not viewed as attractive, so the aim to return to higher rates is clear. With such a ROC, it is not inevitable that we will move into a soft market.”
A good thing for the market
The rise of broker-led facilities has been the subject of much discussion, but Turk said that on the whole she was a supporter.
“Not a day goes by when we do not talk about facilities,” she added. “I think they are good thing for the market.
“They represent a structural change for the market, and brokers see them as an efficient way to grow.
“Brokers are under pressure to deliver for their shareholders, and they want to assume control of greater parts of the distribution chain.
“These cross-class facilities are bringing in business that would not have naturally come into Lloyd’s, and they will happen whether we like them or not.”
Turk added that the world was as risky as it had ever been and that Lloyd’s was once again being asked to drive innovation and new products, which can then be rolled out to the wider industry.
“The appetite from institutional capital is immense.” Rachel Turk, Lloyd’s
“A case in point is data centres,” she said. “They are a problem that the world and the industry need to address.”
It is estimated that data centres in the Asia Pacific were delivering 23 gigawatts, and that figure would multiply by at least 220% by the end of the decade.
“Lloyd’s can build consortia and line size supported by external capital,” Turk said. “But I also believe there are similar changes for defence, energy and planned infrastructure, all of which need a significant response.”
However, she added that there was no shortage of capital keen to enter Lloyd’s.
“The appetite from institutional capital is immense,” Turk added.
Eye on India
Last week, Turk confirmed that Lloyd’s was in the process of applying for a reinsurance licence to operate from Gujarat International Finance Tech-City (Gift City), India’s first operational smart city and International Financial Services Centre (IFSC).
Turk told InsuranceAsia News that the market was undergoing the process, but clarified that it was doing so following a request from an unnamed syndicate.
InsuranceAsia News understands that the syndicate mentioned by Turk is Niyam syndicate 20147.
“Yes, we are in the process, but this has not been a case of Lloyd’s simply making a decision we want to operate there,” Turk said.
“We have been approached by a syndicate who has asked for our support as they want to operate in India, and we are offering that support by applying for a licence on their behalf.
“We are looking to move to a more demand-led strategy.”
-
‘Pronounced softening’ at Florida renewals bodes well for APAC insureds, but long-term risks are building
- May 27
Double-digit price cuts at the June 1 Florida renewals point to near-term relief for APAC cedents, yet rising coastal exposure and inflation-driven construction costs warn that rating adequacy remains a longer-term challenge.
-
Beyond the canvas: APAC fine art and specie insurance boom fuelled by rising risks, shifting wealth patterns
- May 25
Industry insiders tell InsuranceAsia News that wealth accumulation, art-finance links, and softer pricing drive insurer interest, while geopolitical and transit risks reshape underwriting.
-
Asia Pacific MGA market has ‘a lot of headroom’ for growth
- May 18
GC Access' Steve Warwick highlights strong expansion potential, with MGAs generating new business through talent and technology.
-
‘Extremely unpredictable’: Marsh, Aon warn of critical risk, tighter terms for Strait of Hormuz transits
- May 15
Escalating clashes in the key waterway have forced insurers to radically reduce deployment and recalibrate pricing in near real-time, industry insiders say.
-
Sedgwick | Investing in people is shaping the future of loss adjusting in Asia
Sedgwick Asia says it is ready to meet the evolving challenges of Asia’s dynamic insurance markets.
-
PartnerRe | Understanding ageing in APAC: why perception, planning and protection don’t always align
Ageing is shaping finances, family dynamics and insurance needs of the caregiving ecosystem, but current product propositions and underwriting frameworks are not keeping pace with protection needs, finds PartnerRe survey.
-
BHSI | D&O in Asia in 2026: navigating geopolitics, insolvencies, and digital crackdowns without breaking the bank
A soft market presents organisations with opportunities to strengthen resilience, although the abundance of capacity is unlikely to persist.
-
QBE | Elevating customer experience, humanising claims: QBE Asia’s ‘Solutions in a Box’
Vastly improving turnaround times and personalising service delivery, QBE Asia’s award-winning, end-to-end bundled claims solutions is a game-changer for the insurance industry.
