Reinsurance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Reinsurance Market size in terms of gross written premiums value is expected to grow from USD 444.40 billion in 2024 to USD 591.90 billion by 2029, at a CAGR of greater than 5.90% during the forecast period (2024-2029).
Key Highlights
The market's growth is due to the growing awareness of insurance products. In the past, the insurance market in developing and emerging countries grew slowly because the people were unaware of the product, and neither was the government insisting on its importance. However, with the growing awareness of insurance, these countries' insurance and reinsurance markets are growing.
The reinsurance market is expected to grow due to the growth of property catastrophe protection. However, fragile economies with low insurance penetration due to low disposable income and competition from overseas are expected to impede market growth. On the other hand, digitalization within reinsurance companies will help the market grow in the future.
Furthermore, the growing preference for property and casualty reinsurance and conduit reinsurance among leading industries is expected to provide lucrative opportunities for growth in the coming years.
Alternative sources of capital for the reinsurance market have increased, including pension funds and capital markets investors. Insurance-linked securities (ILS), such as catastrophe bonds, facilitate the transfer of risk to capital markets, increasing the reinsurance industry’s capacity and liquidity.
In the current year, the reinsurance industry had growth in premiums and underwriting profitability. However, return on equity (ROE) and capital levels decreased due to a decline in bond prices (driven by rising interest rates and tightening credit spreads) and equity markets. Despite this, the overall financial health of the reinsurance industry remains strong, with underlying profitability continuing to improve.
Reinsurance Market Trends
Innovation Is Driving The Reinsurance Market
The reinsurance industry is experiencing a boom driven by entrepreneurs who have used their knowledge to build technology-driven businesses that solve long-standing problems within the industry. A growing awareness of the benefits of technology and the growing availability of funding for reinsurance tech startups is driving this boom.
The reinsurance market is expected to undergo a major transformation in the next 5 to 10 years as technology advances and niche software solutions are adopted. These innovations will result in greater efficiency and profitability.
A number of innovations in the insurance industry are driving the reinsurance market. For instance, life reinsurance providers have introduced products that include diabetes, HIV, and mental health issues, as well as new concepts that broaden the scope of occupational disability coverage.
The use of catastrophic risk modeling is one of the most sought-after areas of advanced analytics. Catastrophic risk modeling plays an important role in reinsurance because it has a significant impact on the majority of reinsurance functions, from risk selection and risk mitigation to portfolio analysis and pricing decisions.
North America Is Dominating The Market
Reinsurance is a form of insurance that other insurance companies take out to reduce the risk. Reinsurance aims to reduce the amount of money an insurance company could lose and, in turn, protect its customers from losses. The global reinsurance market is essential for companies worldwide, especially in the United States.
There are a variety of domestic and foreign reinsurers active in the United States personal injury and reinsurance (P&C) reinsurance market. The market is characterized by its dynamic nature, driven by changes in legislation, catastrophic events, and market conditions.
While the US reinsurance industry continues to provide domestic insurance companies with reinsurance capacity, state regulatory authorities have long recognized the need for domestic and foreign reinsurance capacity to serve the needs of a competitive US marketplace. The United States has created a reinsurance framework that has led to an open but safe reinsurance market, with most reinsurance premium revenue reinsured outside the country.
While the reinsurance industry in the United States remains an important source of reinsurance capacity for domestic insurance companies, state regulators have long understood the need for both domestic and non-domestic reinsurance capacity to meet the needs of the United States marketplace. As a result, the United States has established a reinsurance regulatory regime that has resulted in an open but secure reinsurance market where the majority of reinsurance premium income is reinsured outside the United States.
Reinsurance Industry Overview
The reinsurance market is highly fragmented. At present, only a few of the big players have a significant market share. However, due to advances in technology and product development, many firms are expanding their presence in the market by signing new contracts and entering new markets. The market is dominated by the following: Munich Re, Swiss Re, Hannover Re Group, Canada Life Re, and Berkshire Hathaway Inc.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
The market's growth is due to the growing awareness of insurance products. In the past, the insurance market in developing and emerging countries grew slowly because the people were unaware of the product, and neither was the government insisting on its importance. However, with the growing awareness of insurance, these countries' insurance and reinsurance markets are growing.
The reinsurance market is expected to grow due to the growth of property catastrophe protection. However, fragile economies with low insurance penetration due to low disposable income and competition from overseas are expected to impede market growth. On the other hand, digitalization within reinsurance companies will help the market grow in the future.
Furthermore, the growing preference for property and casualty reinsurance and conduit reinsurance among leading industries is expected to provide lucrative opportunities for growth in the coming years.
Alternative sources of capital for the reinsurance market have increased, including pension funds and capital markets investors. Insurance-linked securities (ILS), such as catastrophe bonds, facilitate the transfer of risk to capital markets, increasing the reinsurance industry’s capacity and liquidity.
In the current year, the reinsurance industry had growth in premiums and underwriting profitability. However, return on equity (ROE) and capital levels decreased due to a decline in bond prices (driven by rising interest rates and tightening credit spreads) and equity markets. Despite this, the overall financial health of the reinsurance industry remains strong, with underlying profitability continuing to improve.
Reinsurance Market Trends
Innovation Is Driving The Reinsurance Market
The reinsurance industry is experiencing a boom driven by entrepreneurs who have used their knowledge to build technology-driven businesses that solve long-standing problems within the industry. A growing awareness of the benefits of technology and the growing availability of funding for reinsurance tech startups is driving this boom.
The reinsurance market is expected to undergo a major transformation in the next 5 to 10 years as technology advances and niche software solutions are adopted. These innovations will result in greater efficiency and profitability.
A number of innovations in the insurance industry are driving the reinsurance market. For instance, life reinsurance providers have introduced products that include diabetes, HIV, and mental health issues, as well as new concepts that broaden the scope of occupational disability coverage.
The use of catastrophic risk modeling is one of the most sought-after areas of advanced analytics. Catastrophic risk modeling plays an important role in reinsurance because it has a significant impact on the majority of reinsurance functions, from risk selection and risk mitigation to portfolio analysis and pricing decisions.
North America Is Dominating The Market
Reinsurance is a form of insurance that other insurance companies take out to reduce the risk. Reinsurance aims to reduce the amount of money an insurance company could lose and, in turn, protect its customers from losses. The global reinsurance market is essential for companies worldwide, especially in the United States.
There are a variety of domestic and foreign reinsurers active in the United States personal injury and reinsurance (P&C) reinsurance market. The market is characterized by its dynamic nature, driven by changes in legislation, catastrophic events, and market conditions.
While the US reinsurance industry continues to provide domestic insurance companies with reinsurance capacity, state regulatory authorities have long recognized the need for domestic and foreign reinsurance capacity to serve the needs of a competitive US marketplace. The United States has created a reinsurance framework that has led to an open but safe reinsurance market, with most reinsurance premium revenue reinsured outside the country.
While the reinsurance industry in the United States remains an important source of reinsurance capacity for domestic insurance companies, state regulators have long understood the need for both domestic and non-domestic reinsurance capacity to meet the needs of the United States marketplace. As a result, the United States has established a reinsurance regulatory regime that has resulted in an open but secure reinsurance market where the majority of reinsurance premium income is reinsured outside the United States.
Reinsurance Industry Overview
The reinsurance market is highly fragmented. At present, only a few of the big players have a significant market share. However, due to advances in technology and product development, many firms are expanding their presence in the market by signing new contracts and entering new markets. The market is dominated by the following: Munich Re, Swiss Re, Hannover Re Group, Canada Life Re, and Berkshire Hathaway Inc.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Insurance Penetration
4.2.2 Climate Change and Raising Catastrophes Drive the Need of Reinsurance
4.3 Market Restraints
4.3.1 Complex Macro-Economic and Geopolitical Scenario
4.3.2 Regulatory Barrier in Reinsurance Performance
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Technological Innovations in the Market
4.6 Insights on Regulatory and Industry Policies in the Market
4.7 Insights on the Impact of Covid-19
4.8 Key Market Risks and Impact Analysis
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Facultative Reinsurance
5.1.2 Treaty Reinsurance
5.2 By Application
5.2.1 Property & Casualty Insurance
5.2.2 Life and Health Insurance
5.3 By Distribution Channel
5.3.1 Direct Writing
5.3.2 Broker
5.4 By Region
5.4.1 North America
5.4.2 Europe
5.4.3 Asia-Pacific
5.4.4 Rest of the World
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration (Overview and Market Share)
6.2 Company Profiles
6.2.1 Munich RE
6.2.2 Swiss RE
6.2.3 Hannover Re Group
6.2.4 Canada Life RE
6.2.5 Berkshire Hathaway Inc.
6.2.6 SCOR SE
6.2.7 China Reinsurance Corp
6.2.8 Lloyd's
6.2.9 Reinsurance Group of America
6.2.10 Everest Re Group
6.2.11 Partner RE
6.2.12 Renaissancere
6.2.13 Sompo Holdings*
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
8 DISCLAIMER AND ABOUT US
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Insurance Penetration
4.2.2 Climate Change and Raising Catastrophes Drive the Need of Reinsurance
4.3 Market Restraints
4.3.1 Complex Macro-Economic and Geopolitical Scenario
4.3.2 Regulatory Barrier in Reinsurance Performance
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Technological Innovations in the Market
4.6 Insights on Regulatory and Industry Policies in the Market
4.7 Insights on the Impact of Covid-19
4.8 Key Market Risks and Impact Analysis
5 MARKET SEGMENTATION
5.1 By Type
5.1.1 Facultative Reinsurance
5.1.2 Treaty Reinsurance
5.2 By Application
5.2.1 Property & Casualty Insurance
5.2.2 Life and Health Insurance
5.3 By Distribution Channel
5.3.1 Direct Writing
5.3.2 Broker
5.4 By Region
5.4.1 North America
5.4.2 Europe
5.4.3 Asia-Pacific
5.4.4 Rest of the World
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration (Overview and Market Share)
6.2 Company Profiles
6.2.1 Munich RE
6.2.2 Swiss RE
6.2.3 Hannover Re Group
6.2.4 Canada Life RE
6.2.5 Berkshire Hathaway Inc.
6.2.6 SCOR SE
6.2.7 China Reinsurance Corp
6.2.8 Lloyd's
6.2.9 Reinsurance Group of America
6.2.10 Everest Re Group
6.2.11 Partner RE
6.2.12 Renaissancere
6.2.13 Sompo Holdings*
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
8 DISCLAIMER AND ABOUT US
