PUBLISHER: The Business Research Company | PRODUCT CODE: 1435520
PUBLISHER: The Business Research Company | PRODUCT CODE: 1435520
Reinsurance is a practice where multiple insurance companies collaborate to mitigate their risk exposure by purchasing insurance from other insurers, thereby minimizing potential losses collectively in the event of a catastrophic occurrence.
The primary categories of reinsurance include property and casualty reinsurance, along with life and health reinsurance. Life and health reinsurance encompass coverage for both health and life-related risks. These services are provided through both online and offline channels, catering to domestic and international organizations. The distribution channels involved in reinsurance are direct writing and brokerage.
The reinsurance research report is one of a series of new reports from The Business Research Company that provides reinsurance statistics, including reinsurance industry global market size, regional shares, competitors with reinsurance shares, detailed reinsurance segments, market trends and opportunities, and any further data you may need to thrive in the reinsurance industry. This reinsurance research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The reinsurance market size has grown rapidly in recent years. It will grow from $575.66 billion in 2023 to $637.4 billion in 2024 at a compound annual growth rate (CAGR) of 10.7%. The growth in the historical period can be linked to catastrophic events, advancements in risk modeling, pandemics, and health crises, as well as concerns related to climate change.
The reinsurance market size is expected to see rapid growth in the next few years. It will grow to $952.84 billion in 2028 at a compound annual growth rate (CAGR) of 10.6%. The growth in the forecasted period can be ascribed to changes in the regulatory landscape, the adoption of sustainable and ESG practices, the emergence of alternative capital sources, demographic shifts, and disruptions in the supply chain. Major trends expected in the forecast period include the incorporation of predictive analytics in underwriting, the integration of insurtech solutions, the development of specialty reinsurance lines, the establishment of long-term partnerships, and the introduction of parametric reinsurance products.
The reinsurance market is expected to experience growth due to the increasing frequency of natural and man-made catastrophic events. These events, stemming from major disasters of either natural or human origin, cause substantial damage to assets and widespread physical devastation. Reinsurance plays a crucial role in mitigating the financial risks faced by insurance companies during such large-scale catastrophes. By transferring a portion of their risk to a third party, insurance companies can share the premiums collected. In 2021, the global number of catastrophic events related to natural hazards reached 432, as reported by the Emergency Event Database (EM-DAT) maintained by the research unit of the University of Louvain (UCLouvain). This figure is higher than the 357 catastrophic events recorded in 2020, indicating a growing need for reinsurance in response to these events.
The growth of the reinsurance market is also driven by the increasing number of road accidents. These accidents, involving motor vehicle collisions resulting in injuries or fatalities, lead to a heightened demand for insurance coverage related to automobile accidents. This surge in demand contributes to the overall growth of the insurance and reinsurance sectors. For example, data from the National Highway Traffic Safety Administration in August 2022 revealed a 7% increase in traffic accident-related fatalities during the first quarter of 2022, with 9,560 individuals losing their lives compared to 8,935 fatalities in the same period in 2021. Therefore, the rising number of road accidents is a significant factor propelling the growth of the reinsurance market.
Reinsurance providers are adopting blockchain technology to streamline processes, reduce costs, and enhance efficiency, transparency, and security related to client data and financial transactions. Blockchain, a decentralized and distributed ledger, offers a shared database that is not controlled by a central authority. It ensures secure transactions that are authenticated and verifiable, leading to benefits such as reduced processing time and transaction costs, improved compliance, prevention of re-entries and fraud, minimized time to settle losses, and cryptographic security. The adoption of blockchain technology has the potential to cut the costs of reinsurance companies by more than $5 billion globally.
Prominent firms in the reinsurance market are incorporating innovative technologies such as PolicyGPT to reinforce their position in the industry. PolicyGPT, an AI-powered tool developed by health insurance startup Plum, aims to enhance user experiences and policy awareness. In April 2023, Plum Benefits Private Limited, an India-based health insurance company, introduced the AI-driven tool PolicyGPT. Utilizing the OpenAI GPT-3 architecture, the chatbot PolicyGPT provides users with information about their health insurance policies purchased from Plum. With access to user policy details and a comprehensive understanding of health insurance, its primary objective is to inform users about their coverage.
Reinsurers globally are adopting a strategy of offering bundled products and services to boost their revenues. This shift is driven by the appeal of diverse options, competitive pricing, and broader coverage, allowing reinsurers to gain additional market share and reduce costs. This approach enables global reinsurers such as Generali and Allianz to finalize business deals at a group level, thereby streamlining the provision of reinsurance services and cutting down on associated costs.
Major companies operating in the reinsurance market report are Berkshire Hathaway Inc., Axa S.A., Lloyd's of London, Liberty Mutual Group, Swiss Reinsurance Company Ltd., Taiping Reinsurance, Mapfre Re, SCOR SE, China Reinsurance (Group) Corp., Everest Group Ltd., PartnerRe, Odyssey Re Holdings Corp., General Insurance Corporation of India, Korean Reinsurance Company, AXIS Capital Holdings Limited, Transatlantic Reinsurance Company, Die R+V Versicherung AG, Munich Reinsurance Company, The Toa Reinsurance Company Limited, Qatar Reinsurance Company Limited, Pacific Life Insurance Company, Peak Reinsurance Company Limited, Hannover Re, Reinsurance Group of America Inc., Talanx, The Canada Life Assurance Company, Validus Reinsurance Ltd., Vakif Emeklilik ve Hayat, Arch Reinsurance Ltd., Sirius International Insurance Group
Western Europe was the largest region in the reinsurance market in 2023. The Asia-Pacific was the second largest region in the reinsurance market. The regions covered in the reinsurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the reinsurance market report are Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa.
The reinsurance market consists of sales of reinsurance products by entities that assume all or part of the risk of existing insurance policies originally underwritten by other insurance providers (direct insurance carriers). Reinsurance providers invest premiums collected from insurance providers to build up a portfolio of financial assets to be used against future claims. The size of the market is based on the value of the premiums reinsured. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Reinsurance Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on reinsurance market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for reinsurance ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The reinsurance market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.