Newly released Reinsurance Market analysis report by Future Market Insights shows that global sales of Reinsurance Market in 2021 was held at USD 292.4 Billion. With 4.5% projected growth, the market during 2022 to 2032 is expected to reach a valuation of USD 474 Billion. Non-Life/Property and Casualty Reinsurance Companies is expected to be the highest revenue-generating category, projected to register a CAGR of 4.3% during 2022 to 2032.
| Attributes | Details |
|---|---|
| Global Reinsurance Market Size (2022) | USD 306.4 Billion |
| Global Reinsurance Market Size (2032) | USD 474 Billion |
| Global Reinsurance Market CAGR (2022 to 2032) | 4.5% |
| USA Reinsurance Market Size (2032) | USD 186.6 Billion |
| Key Companies Covered | Barents Re Reinsurance Inc.; Berkshire Hathaway Inc.; BMS Group Ltd.; China Reinsurance (Group) Corporation; Everest Re Group, Ltd.; Swiss Re; Munich Re; Covea; Brookfield Reinsurance; Bluefire Insurance; SCOR SE; Hannover Re; AXA SA; Zurich Insurance Group |
As per the Reinsurance Market research by Future Market Insights - a market research and competitive intelligence provider, historically, from 2017 to 2021, market value of the Reinsurance Market increased at around 4.9% CAGR.
Reinsurance, like primary markets, is experiencing an oversupply of capital. Almost all global reinsurance firms have expanded their footprint, seeking to do more business in Asia and Latin America, while "local" and regional firms have also sought to expand globally, beyond their home markets. Furthermore, over the last decade, the distinction between primary insurance and reinsurance has blurred, with most companies offering both. Only a few pure-play reinsurance companies offer both non-life and life/health coverage.
The corporate sector requires indemnification in the event of major losses, and consumers seek asset protection in an era of rising crime, as well as health care and retirement income, as economic and social conditions involving liberalization, privatization, and de-monopolization stimulate demand for insurance.
Most countries permit reinsurers to operate independently on both domestic and international level. Some companies, however, limit individual insurers' placement to a single reinsurer or market. To name a few, Latvia, Lithuania, Moldova, Romania, and Slovenia require international placement only when domestic reinsurers are unable to acknowledge the industry.
The reinsurance industry is experiencing a new normal as a result of this digital transformation. Customers are becoming more aware of digital risks, and there is a growing demand for greater digital transparency and accountability. Digital trust and confidence in data handling are required for digital technologies to reach their full potential. Swiss Re is one of only two companies that have had their digital products tested and certified by the Swiss Digital Initiative's Digital Trust Label, which is the world's first digital responsibility label. Under the Swiss Digital Trust Label, a person can identify trustworthy digital services, and digital service providers can confidently proclaim one's digital obligation.
The current pricing movement is influenced by rising loss cost inflation, natural calamities, and historically low investment gains. Market discipline has increased as a result of an uncertain economic environment and natural disasters, including tighter terms and conditions. Hurricane Katrina's economic toll was estimated to be more than USD 160 Billion. Insurance companies in the United States paid USD 41 Billion on 1.7 Million claims, and an additional USD 8 Billion for damage to offshore energy facilities in the Gulf of Mexico. Hurricane Katrina resulted in total insured losses of more than USD 65 Billion, including USD 16.3 Billion in publicly insured losses to FEMA's National Flood Insurance Program. Now it can be estimated at nearly USD 86 Billion after considering inflation.
As primary carriers seek consistent results and operational efficiencies in an uncertain environment, demand for reinsurance capacity is rising. Unfavorable loss cost trends and increased catastrophe activity continue to dampen capital returns, highlighting the need for further rate hikes. After several years of significant property disaster events, as well as commodity and labour demand surges and near-term inflation, third-party capital has become cautious. Life reinsurance markets are dominated by a few well-capitalized firms, resulting in less competitive pressure.
Increased adoption of artificial intelligence and machine learning in various sectors stimulated various reinsurance companies to adopt it in their operations. With its new CertAI validation service, Munich Re is increasing the acceptance of artificial intelligence and paving the way for responsible AI application use. Companies from a variety of industries are investing in R&D and artificial intelligence deployment in order to capitalize on promising business opportunities. CertAI validates the trustworthiness of artificial intelligence in new product solutions in an independent and objective manner, demonstrating its quality to clients, investors, and regulatory authorities.
Asia Pacific is the most lucrative region with the highest projected growth. Demographic development and digital transformation dynamics are expected to drive significant business growth for reinsurance companies in APAC in the future. There is also opportunities to close the protection gap in low-insurance-penetration countries as the companies share their extensive product knowledge with regional clients and offer solutions based on their professional insurance expertise.
Asia Pacific Reinsurance market has increased as domestic insurers seek financial resources to cover massive risks. China and India have been among the fastest growing life and general insurance markets in the world. Domestic reinsurer revenue has increased in these countries as a result of mandatory cession regulation and a growing insurance industry. Singapore and Hong Kong have emerged as global reinsurance hubs due to their well-established regulatory frameworks and strong financial infrastructure. The headquarters of key global reinsurers such as Swiss Re, Munich Re, SCOR, and Hannover Re are located in these countries.
Climate volatility, which has exacerbated natural disaster risks, is another area of focus for reinsurers. Natural disaster losses in the region are expected to total USD 67 Billion in 2020, with only 4.5% insured, indicating a significant gap and opportunity for both insurance and reinsurance firms.
The United States is expected to have the highest market share of USD 186.6 Billion by the end of 2032 accounting for approximately 40% of the worldwide share. An increasing number of casualty insurers are using reinsurance to supplement their own development and capital positions. This rise in casualty reinsurance has coincided with a greater appetite for corporate reinsurance among reinsurers who had previously concentrated on assets and other short-tail lines. As the property insurance market deteriorated, the reinsurers' portfolios diversified to include casualty lines. Clients' need to support their own growth and capital has driven much of the recent growth in casualty reinsurance. Excess reinsurance demand has remained relatively stable in recent years.
Covid-19 outbreak in 2020 had also affected the reinsurance market in United States. Since the outbreak of the COVID-19 pandemic, Reinsurance Group of America has seen an increase in demand for its life reinsurance service. RGA has also seen an increase in demand for coverage and expertise, which is expected to continue as the importance of these services becomes more widely recognised.
Reinsurance revenue through Broker channels is forecasted to grow at the highest CAGR of over 4.6% during 2022-2032. The reinsurance broker's primary function is to connect the reinsured and reinsurer's insurance needs in order to secure reinsurance terms that are mutually acceptable. The reinsurance broker frequently assists the reinsured in the planning and development of its reinsurance program, such as gathering the reinsurance proposition and relevant premium and loss statistical data to present to the reinsurance market when seeking reinsurance support, proposing the reinsurer's terms and conditions, placing firm orders on the reinsurer's behalf, and preparing the reinsurance slip for the reinsured.
Brokers reporting increased demand for cyber reinsurance in 2020 across a variety of market structures, according to PartnerRe's most recent annual cyber insurance market survey. In collaboration with Advisen, PartnerRe, a Bermuda-based reinsurance firm, undertook a survey of the cyber insurance market, conducting interviews of 260 cyber insurance agents and 190 cyber underwriters globally. According to survey findings, understanding of cyber insurance coverage has significantly improved in recent years, with the consistency in pricing and coverage provided.
Simultaneously, insureds are consistently requesting higher limits of coverage from their cyber insurers, indicating that the market will continue to expand steadily.
Reinsurance revenue through Non-Life/Property & Casualty Reinsurance Companies segment is forecasted to grow at the highest CAGR of over 4.3% during 2022-2032. Technological advancements, alternative capital, financial market structuring methodologies, and the integration of value-added services with reinsurance will shape the global non-life reinsurance industry's prospects. The growth of exchange-traded secondary markets and automated placement is also affecting the non-life reinsurance industry.
The dramatic increase in demand for property and casualty reinsurance claims caused by major casualty events and natural disasters such as hurricanes, tsunamis, and storms, among others, has strained insurance companies. As a result, insurers rely more on reinsurance. Natural disasters are becoming more common, the investment environment and financial markets are volatile, and economic growth is a few of the key drivers and trends driving growth in Property and Casualty Reinsurance companies.
Among the leading players in the global Reinsurance market are Barents Re Reinsurance, Inc., Berkshire Hathaway Inc., BMS Group Ltd., China Reinsurance (Group) Corporation, Everest Re Group, Ltd. To gain a competitive advantage in the industry, these market players are investing in product launches, partnerships, mergers and acquisitions, and expansions.
Market growth is expected to be fueled by collaborations among current players to improve quality throughout the research period. Over the projection period, established market players are expected to diversify their portfolios and offer one-stop solutions to combat fierce competition.
In March 2022, Swiss Re and Singapore's composite insurer, NTUC Income collaborated to create the country's first longevity plan. This partnership will help NTUC Income to protect its annuity book from future fluctuations by splitting any future payments to annuitants who live longer than their age expectancy with Swiss Re. Because annuities are a long-term business, various solvency regimes may impose high capital requirements. This collaboration enables Income to increase its capital efficiency and strengthen its solvency.
In July 2020, Bluefire Insurance, a Managing General Agency, and AXA XL Reinsurance, headquartered in Bermuda fulfilled a reinsurance transaction wherein Bluefire will presume uncertainty out of its personal auto portfolio through a securitized reinsurance arrangement with AXA XL.
In February 2022, SCOR, a global reinsurer completed a USD 6.6 Billion longevity reinsurance transaction on behalf of more than 17,000 Lloyds Bank Pension Scheme No. 1 members. Since SCOR provides 100% longevity reinsurance coverage, Scottish Widows Limited, a division of Lloyds Banking Group, acts as a third-party insurer in the contract.
Similarly, recent developments related to reinsurance companies have been tracked by the team at Future Market Insights, which are available in the full report.
Table 1: Global Market Value (US$ Mn) Forecast by Region, 2017-2032
Table 2: Global Market Value (US$ Mn) Forecast by Distribution Channel, 2017-2032
Table 3: Global Market Value (US$ Mn) Forecast by End User, 2017-2032
Table 4: North America Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 5: North America Market Value (US$ Mn) Forecast by Distribution Channel, 2017-2032
Table 6: North America Market Value (US$ Mn) Forecast by End User, 2017-2032
Table 7: Latin America Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 8: Latin America Market Value (US$ Mn) Forecast by Distribution Channel, 2017-2032
Table 9: Latin America Market Value (US$ Mn) Forecast by End User, 2017-2032
Table 10: Europe Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 11: Europe Market Value (US$ Mn) Forecast by Distribution Channel, 2017-2032
Table 12: Europe Market Value (US$ Mn) Forecast by End User, 2017-2032
Table 13: Asia Pacific Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 14: Asia Pacific Market Value (US$ Mn) Forecast by Distribution Channel, 2017-2032
Table 15: Asia Pacific Market Value (US$ Mn) Forecast by End User, 2017-2032
Table 16: MEA Market Value (US$ Mn) Forecast by Country, 2017-2032
Table 17: MEA Market Value (US$ Mn) Forecast by Distribution Channel, 2017-2032
Table 18: MEA Market Value (US$ Mn) Forecast by End User, 2017-2032
Figure 1: Global Market Value (US$ Mn) by Distribution Channel, 2022-2032
Figure 2: Global Market Value (US$ Mn) by End User, 2022-2032
Figure 3: Global Market Value (US$ Mn) by Region, 2022-2032
Figure 4: Global Market Value (US$ Mn) Analysis by Region, 2017-2032
Figure 5: Global Market Value Share (%) and BPS Analysis by Region, 2022-2032
Figure 6: Global Market Y-o-Y Growth (%) Projections by Region, 2022-2032
Figure 7: Global Market Value (US$ Mn) Analysis by Distribution Channel, 2017-2032
Figure 8: Global Market Value Share (%) and BPS Analysis by Distribution Channel, 2022-2032
Figure 9: Global Market Y-o-Y Growth (%) Projections by Distribution Channel, 2022-2032
Figure 10: Global Market Value (US$ Mn) Analysis by End User, 2017-2032
Figure 11: Global Market Value Share (%) and BPS Analysis by End User, 2022-2032
Figure 12: Global Market Y-o-Y Growth (%) Projections by End User, 2022-2032
Figure 13: Global Market Attractiveness by Distribution Channel, 2022-2032
Figure 14: Global Market Attractiveness by End User, 2022-2032
Figure 15: Global Market Attractiveness by Region, 2022-2032
Figure 16: North America Market Value (US$ Mn) by Distribution Channel, 2022-2032
Figure 17: North America Market Value (US$ Mn) by End User, 2022-2032
Figure 18: North America Market Value (US$ Mn) by Country, 2022-2032
Figure 19: North America Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 20: North America Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 21: North America Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 22: North America Market Value (US$ Mn) Analysis by Distribution Channel, 2017-2032
Figure 23: North America Market Value Share (%) and BPS Analysis by Distribution Channel, 2022-2032
Figure 24: North America Market Y-o-Y Growth (%) Projections by Distribution Channel, 2022-2032
Figure 25: North America Market Value (US$ Mn) Analysis by End User, 2017-2032
Figure 26: North America Market Value Share (%) and BPS Analysis by End User, 2022-2032
Figure 27: North America Market Y-o-Y Growth (%) Projections by End User, 2022-2032
Figure 28: North America Market Attractiveness by Distribution Channel, 2022-2032
Figure 29: North America Market Attractiveness by End User, 2022-2032
Figure 30: North America Market Attractiveness by Country, 2022-2032
Figure 31: Latin America Market Value (US$ Mn) by Distribution Channel, 2022-2032
Figure 32: Latin America Market Value (US$ Mn) by End User, 2022-2032
Figure 33: Latin America Market Value (US$ Mn) by Country, 2022-2032
Figure 34: Latin America Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 35: Latin America Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 36: Latin America Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 37: Latin America Market Value (US$ Mn) Analysis by Distribution Channel, 2017-2032
Figure 38: Latin America Market Value Share (%) and BPS Analysis by Distribution Channel, 2022-2032
Figure 39: Latin America Market Y-o-Y Growth (%) Projections by Distribution Channel, 2022-2032
Figure 40: Latin America Market Value (US$ Mn) Analysis by End User, 2017-2032
Figure 41: Latin America Market Value Share (%) and BPS Analysis by End User, 2022-2032
Figure 42: Latin America Market Y-o-Y Growth (%) Projections by End User, 2022-2032
Figure 43: Latin America Market Attractiveness by Distribution Channel, 2022-2032
Figure 44: Latin America Market Attractiveness by End User, 2022-2032
Figure 45: Latin America Market Attractiveness by Country, 2022-2032
Figure 46: Europe Market Value (US$ Mn) by Distribution Channel, 2022-2032
Figure 47: Europe Market Value (US$ Mn) by End User, 2022-2032
Figure 48: Europe Market Value (US$ Mn) by Country, 2022-2032
Figure 49: Europe Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 50: Europe Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 51: Europe Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 52: Europe Market Value (US$ Mn) Analysis by Distribution Channel, 2017-2032
Figure 53: Europe Market Value Share (%) and BPS Analysis by Distribution Channel, 2022-2032
Figure 54: Europe Market Y-o-Y Growth (%) Projections by Distribution Channel, 2022-2032
Figure 55: Europe Market Value (US$ Mn) Analysis by End User, 2017-2032
Figure 56: Europe Market Value Share (%) and BPS Analysis by End User, 2022-2032
Figure 57: Europe Market Y-o-Y Growth (%) Projections by End User, 2022-2032
Figure 58: Europe Market Attractiveness by Distribution Channel, 2022-2032
Figure 59: Europe Market Attractiveness by End User, 2022-2032
Figure 60: Europe Market Attractiveness by Country, 2022-2032
Figure 61: Asia Pacific Market Value (US$ Mn) by Distribution Channel, 2022-2032
Figure 62: Asia Pacific Market Value (US$ Mn) by End User, 2022-2032
Figure 63: Asia Pacific Market Value (US$ Mn) by Country, 2022-2032
Figure 64: Asia Pacific Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 65: Asia Pacific Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 66: Asia Pacific Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 67: Asia Pacific Market Value (US$ Mn) Analysis by Distribution Channel, 2017-2032
Figure 68: Asia Pacific Market Value Share (%) and BPS Analysis by Distribution Channel, 2022-2032
Figure 69: Asia Pacific Market Y-o-Y Growth (%) Projections by Distribution Channel, 2022-2032
Figure 70: Asia Pacific Market Value (US$ Mn) Analysis by End User, 2017-2032
Figure 71: Asia Pacific Market Value Share (%) and BPS Analysis by End User, 2022-2032
Figure 72: Asia Pacific Market Y-o-Y Growth (%) Projections by End User, 2022-2032
Figure 73: Asia Pacific Market Attractiveness by Distribution Channel, 2022-2032
Figure 74: Asia Pacific Market Attractiveness by End User, 2022-2032
Figure 75: Asia Pacific Market Attractiveness by Country, 2022-2032
Figure 76: MEA Market Value (US$ Mn) by Distribution Channel, 2022-2032
Figure 77: MEA Market Value (US$ Mn) by End User, 2022-2032
Figure 78: MEA Market Value (US$ Mn) by Country, 2022-2032
Figure 79: MEA Market Value (US$ Mn) Analysis by Country, 2017-2032
Figure 80: MEA Market Value Share (%) and BPS Analysis by Country, 2022-2032
Figure 81: MEA Market Y-o-Y Growth (%) Projections by Country, 2022-2032
Figure 82: MEA Market Value (US$ Mn) Analysis by Distribution Channel, 2017-2032
Figure 83: MEA Market Value Share (%) and BPS Analysis by Distribution Channel, 2022-2032
Figure 84: MEA Market Y-o-Y Growth (%) Projections by Distribution Channel, 2022-2032
Figure 85: MEA Market Value (US$ Mn) Analysis by End User, 2017-2032
Figure 86: MEA Market Value Share (%) and BPS Analysis by End User, 2022-2032
Figure 87: MEA Market Y-o-Y Growth (%) Projections by End User, 2022-2032
Figure 88: MEA Market Attractiveness by Distribution Channel, 2022-2032
Figure 89: MEA Market Attractiveness by End User, 2022-2032
Figure 90: MEA Market Attractiveness by Country, 2022-2032
The global Reinsurance Market is worth more than USD 292.4 Billion at present.
The value of the reinsurance market is projected to increase at a CAGR of around 4.5% during 2022 to 2032.
The value of the reinsurance market increased at a CAGR of around 4.9% during 2017 to 2021.
Increased consumer awareness of insurance, increased government regulation, and increased demand for reinsurance in emerging markets, stands as the key trend in the Reinsurance market.
The market for Reinsurance Market in US is projected to expand at a CAGR of around 4.2% during 2022 to 2032.
Reinsurance Market
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