The reinsurance market size is expected to grow from US$ 485.37 billion in 2023 to US$ 959.48 billion by 2031; it is anticipated to expand at a CAGR of 8.9% from 2023 to 2031. The reinsurance market includes growth prospects owing to the current reinsurance market trends and their foreseeable impact during the forecast period. Insurance companies commonly want financial protection offered to their customers, which can be fulfilled by reinsurance solutions. Insurance companies frequently desire these protections. Reinsurance providers safeguard other insurance companies from losses, particularly those resulting from catastrophic events like hurricanes. This has pushed enterprises across the globe to adopt solutions to mitigate financial risks. In such a scenario, the reinsurance industry has also been evolving to support the risks entailing such changes in enterprises and consumer behavior.
Reinsurance Market Analysis
Reinsurance is referred to as insurance for insurance companies. It is a contract between a reinsurer and an insurer. Reinsurance helps insurers stay in business by recouping all or part of the money they have paid to claimants. Reinsurance lowers the net liability for specific risks and provides disaster protection against significant or numerous losses. Insurers buy reinsurance for four reasons: to boost capacity, to stabilize loss experience, to protect themselves and the insured against disasters, and to limit liability on a particular risk. Reinsurance increases the insurer's capacity to bear the financial burden in the event of uncommon, significant events by protecting it from accumulated liabilities. This provides the insurer with more assurance of its equity and solvency. In order to maintain the solvency margins, insurers can underwrite policies that cover a greater amount of risk without unnecessarily increasing administrative expenses by the use of reinsurance. Furthermore, reinsurance provides insurers with significant liquid assets in the event of extraordinary losses.
Globalization has evolved in recent decades as a result of the expansion of commercial and financial networks that cross national borders, making businesses and workers from other economies increasingly interconnected. Greater globalization creates more chances for international investments, resulting in more investment-linked programs. Moreover, industrialization also facilitates increased investments, cross-broader collaborations, partnerships and joint ventures, facilitating the reinsurance market growth.
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Reinsurance Market: Strategic Insights
Market Size Value in US$ 485.37 billion in 2023 Market Size Value by US$ 959.48 billion by 2031 Growth rate CAGR of 8.9% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Reinsurance Market: Strategic Insights
| Market Size Value in | US$ 485.37 billion in 2023 |
| Market Size Value by | US$ 959.48 billion by 2031 |
| Growth rate | CAGR of 8.9% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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Reinsurance Industry Overview
- Reinsurance is a crucial tool used by insurance firms to control risk and the required capital holdings to sustain that risk.
- Insurers may use reinsurance to achieve an optimal targeted risk profile. In the insurance business, reinsurance transactions can be complicated.
- Businesses may employ numerous reinsurance transactions with different details. Reinsurance is frequently used for the following reasons: 1) increasing the capacity of the insurance company; 2) stabilizing underwriting results; 3) financing; 4) providing catastrophe protection; 5) exiting a particular line of business; 6) distributing risk; and 7) gaining knowledge.
- State insurance regulators have long understood that in order to meet the demands of the American market, both local and foreign reinsurance capacity is necessary, and the U.S. reinsurance sector remains a significant source of capacity for domestic insurers.
- As a result, the US has created a reinsurance regulatory framework that has fostered the growth of an accessible yet safe reinsurance market, with the majority of reinsurance premiums being reinsured outside of the nation.
Reinsurance Market Driver
Significant Growth In Intellectual Property (IP) Reinsurance And Mortgage Reinsurance to Drive the Reinsurance Market
- The expansion and innovation within the intellectual property reinsurance and mortgage reinsurance sectors are poised to be pivotal growth drivers within the reinsurance market.
- By leveraging advanced risk management strategies and tailored solutions, insurers can effectively mitigate risks associated with intellectual property assets and mortgage portfolios, thus unlocking new opportunities for revenue generation and market expansion.
- This strategic focus on intellectual property and mortgage reinsurance not only enhances insurers' ability to manage risk but also fosters a climate of stability and confidence within the industry, attracting increased investment and driving the reinsurance market growth.
Reinsurance Market Report Segmentation Analysis
- Based on type, the reinsurance market is segmented into facultative reinsurance and treaty reinsurance.
- The treaty reinsurance segment is expected to hold a substantial reinsurance market share in 2023.
- In a treaty reinsurance agreement, the reinsurer is required to accept all of the policies from the reinsured, including those that haven't yet been written or a certain class of policies.
- Facultative reinsurance can cover many sections with multiple policies pooled together, or it can cover a single policy individually, such as reinsuring the excess insurance on a business or large building.
Reinsurance Market Share Analysis By Geography
The scope of the reinsurance market is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant reinsurance market share. The region's significant economic development, growing population, and increasing focus on risk management and reinsurance have contributed to the growth of the market.
Reinsurance Market Report Scope
The "Reinsurance Market Analysis" was carried out based on type, application, mode, and geography. On the basis of type, the market is segmented into facultative reinsurance and treaty reinsurance. Based on application, the reinsurance market is segmented into property & casualty reinsurance and life & health reinsurance. Based on mode, the market is segmented into online and offline. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Reinsurance Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the reinsurance market. A few recent key market developments are listed below:
- In February 2024, Resolution Life announced that its Bermudian reinsurance platform, Resolution Re, has entered into a flow reinsurance agreement with a Japanese insurer. This agreement aims to provide increased capacity and greater product competitiveness, enhancing the offering to the cedent's fixed annuity policyholders.
[Source: Resolution Life, Company Website]
- In January 2024, Reinsurance Group of America, Incorporated announced a strategic investment and exclusive global life and health reinsurance partnership with insurance technology company DigitalOwl.
[Source: Reinsurance Group of America, Company Website]
- In January 2024, Guy Carpenter announced the launch of a new cyber reinsurance product, CatStop+. CatStop+ helps solve a range of issues that cyber reinsurers face, striking a balance between coverage from peak perils, tail protection, and cost-effectiveness while bringing clarity to the recovery of losses resulting from a severe cyber event.
[Source: Guy Carpenter, Company Website]
- In December 2023, Manulife Financial Corporation announced a US$13 billion reinsurance deal, including US$6 billion of long-term care, with Global Atlantic.
[Source: Global Atlantic, Company Website]
Reinsurance Market Report Coverage & Deliverables
The reinsurance market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. The market report "Reinsurance Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
- Market size & forecast at global, regional, and country levels for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Application, Mode and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
Digital transformation promoting online reinsurance is anticipated to play a significant role in the global reinsurance market in the coming years.
The global reinsurance market was estimated to be US$ 485.37 billion in 2023 and is expected to grow at a CAGR of 8.9% during the forecast period 2023 - 2031.
The increasing frequency and severity of natural disasters, increasing innovations in the insurance industry, and significant growth in intellectual property (IP) reinsurance and mortgage reinsurance are the major factors that propel the global reinsurance market.
The key players holding majority shares in the global reinsurance market are Munich Re; Swiss Re Group; Hannover Re Group; Canada Life RE; and Berkshire Hathaway Inc,
The global reinsurance market is expected to reach US$ 959.48 billion by 2031.
- Munich Re
- Swiss Re Group
- Hannover Re Group
- Canada Life RE
- Berkshire Hathaway Inc
- China Reinsurance (Group)
- Lloyd’s
- BMS Group
- Markel Corporation
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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