The global reinsurance market remains soft despite estimated first-half losses of $US6 billion ($6.2 billion), Willis Re’s annual July renewal report has revealed.

Willis Re CEO Peter Hearn says current pricing trends “seem to indicate that the market is giving little weight to the potential for extreme events”.

With the brunt of the Atlantic hurricane season yet to arrive, the reinsurer has warned of further losses, meaning full-year reinsurer profits are “anything but assured”.

The company says the “deceptively tenuous” environment could soon erode soft pricing.

As for the Australian market, Willis Re noted no significant changes to property risk pricing despite a number of significant losses in the region.

But it says recent reforms may affect pricing in future as clients decide whether to use only APRA-regulated reinsurers.

APRA finalised its reforms to the prudential framework for general insurance last month. These include the introduction of a risk-based scale regarding reinsurance recoverables.

It’s expected the measures will allow clients to continue to access well-regarded foreign insurers unhindered.