Global Reinsurance Market

Reinsurance Market Size, Share, Growth Analysis, By Type(Property Reinsurance and Casualty Reinsurance), By Distribution Channel(Brokers and Captive Insurance Companies), By Region - Industry Forecast 2024-2031


Report ID: SQMIG40Q2001 | Region: Global | Published Date: February, 2024
Pages: 157 |Tables: 59 |Figures: 75

Reinsurance Market Insights

Reinsurance Market size was valued at USD 498.7 billion in 2021 and is poised to grow from USD 552.56 billion in 2022 to USD 1255.15 billion by 2030, growing at a CAGR of 10.8% in the forecast period (2023-2030).

In 2022, the global reinsurance sector continued to report strong premium growth and underwriting profitability. However, ROEs and capital levels were pulled lower due to a fall in the market value of bonds (due to rising interest rates and widening credit spreads) and equities.

Nevertheless, the global reinsurance industry’s financial strength remains healthy with an improving trend of underlying profitability. Over the ten years from 2012 through 2021, reinsurers’ average annual total shareholder return (TSR) of 14.5% eclipsed that of all sectors of primary insurance (property and casualty, multiline, and life & health). In recent years, the impact of natural catastrophes has put pressure on reinsurers’ TSR.

Even so, their average annual TSR of 8.1% over the five years from 2017 through 2021 still surpassed that of all primary insurance sectors except for property and casualty. Demand for catastrophe bonds currently outpaces supply, as insurers and reinsurers increasingly turn to alternative capital markets to supplement traditional reinsurance and maximize placements in a challenging environment. Munich Re and Swiss Re accounted for 24.3% of the

Top 50 reinsurer's gross written premiums in 2021, down slightly from 25.6% in 2020, likely driven by the depreciation of the euro. Despite notable catastrophe losses in 2021, many stemming from secondary perils, the Top 50 companies on average posted a combined ratio under 100 for the first time in 2021 for the last 5 years. The average combined ratio of the Top 10 companies was 99.2, significantly better than the 104.9 in 2020.

US Reinsurance Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 498.7 billion

Largest Segment

Property Reinsurance

Fastest Growth

Property Reinsurance

Growth Rate

10.8% CAGR

Global Reinsurance Market ($ Bn)
Country Share for North America Region (%)

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Reinsurance Market Segmental Analysis

The global reinsurance market is segmented by type, application, and region. Based on type, the market can be segmented into property reinsurance and casualty reinsurance. Based on distribution channels, the market is segmented into brokers and captive insurance companies. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Reinsurance Market Analysis by Type

Property Reinsurance is the most dominant segment of the reinsurance This segment includes all types of property insurance, including commercial, residential, and industrial property. It's a way of transferring some of the financial risk insurance companies assume in insuring cars, homes and businesses to another insurance company, the reinsurer.

While Casualty Reinsurance being the fastest growing segment covers liability insurance for individuals or corporations, including general, product, and professional liability. Which means that the policy includes liability coverage to help protect you if you're found legally responsible for an accident that causes injuries to another person or damage to another person's belongings. Property and casualty insurance are typically bundled together into one insurance policy.

Reinsurance Market Analysis by Distribution Channel

Brokers being the most dominant also known as Reinsurance brokers act as intermediaries between insurance companies and reinsurance companies.

While Captive Insurance Companies are the fastest growing segment are special-purpose insurance companies owned by a single corporation or group of corporations.

Global Reinsurance Market By Type, 2023 (%)

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Reinsurance Market Regional Insights

North America is a mature reinsurance market, with the United States being the largest market by far. North America accounted for 34% of global reinsurance premiums. The market is dominated by a small group of large reinsurers, including Swiss Re, Munich Re, and Berkshire Hathaway. The North American market is also heavily influenced by catastrophic events, such as hurricanes, wildfires, and earthquakes. These events have become more frequent and severe in recent years, leading to increased demand for reinsurance.

In contrast, Asia-Pacific is a rapidly growing and emerging market, accounting for 17% of global reinsurance premiums. The region is seeing significant economic growth, technological advancement, and increasing insurance penetration, which is driving demand for reinsurance. The market is diverse, with several countries having significantly different levels of insurance penetration and regulatory environments. China is the largest market in the region, followed by Japan, South Korea, and Australia. The region is also seeing increasing competition among reinsurers, with international players trying to establish a foothold and domestic players expanding their capabilities.

Global Reinsurance Market By Geography, 2024-2031
  • Largest
  • Fastest

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Reinsurance Market Dynamics

Reinsurance Market Drivers

Increasing Frequency And Severity Of Catastrophic Events

  • The increasing frequency and severity of catastrophic events are a major driver of the global reinsurance market. With the rise in extreme weather conditions, natural disasters and pandemics, insurers are facing the challenge of managing their risk portfolios. Reinsurers, on the other hand, provide an important cushion to insurers by accepting a portion of the risk and sharing it with other insurers in the form of reinsurance. In recent years, the global reinsurance market has seen significant growth due to an increase in the demand for catastrophic coverage, which has been driven by the impact of climate change on the insurance industry.

Reinsurance Market Restraints

Increasing Competition And Pressure On Profit Margins

  • One of the main restraints of the global reinsurance market is the increasing competition and pressure on profit margins. The market is highly competitive, with numerous reinsurance companies vying for market share. This competition has led to lower prices and, as a result, decreased profit margins for reinsurers. Additionally, low-interest rates have made it difficult for reinsurers to generate sufficient investment income to offset the costs of claims. The increasing complexity of risk assessment and reinsurance structures has also increased expenses for reinsurers. These factors, combined with low premiums, have led to declining returns on equity and pressure on the overall profitability of the reinsurance market. As a result, some reinsurance companies have been forced to consolidate or exit the market altogether.

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Reinsurance Market Competitive Landscape

The global reinsurance market is highly competitive and fragmented, with numerous players vying for market share. The market is dominated by several large companies. These companies have substantial financial resources, extensive underwriting capabilities, and global reach. There are also many smaller and regional reinsurers that compete with global players. The market is highly cyclical, with fluctuations in demand and supply driven by catastrophic events such as natural disasters and pandemics. Additionally, along with traditional reinsurance, alternative risk transfer solutions such as insurance-linked securities have gained popularity. Technological advancements, changing regulations, and shifting customer expectations are also driving changes within the industry. Overall, the global reinsurance market is highly competitive, dynamic and constantly evolving.

Reinsurance Market Top Player’s Company Profiles

  • Berkshire Hathaway Re (United States)
  • SCOR SE (France)
  • Lloyd's (United Kingdom)
  • Korean Re (South Korea)
  • China Re (China)
  • Everest Re (Bermuda)
  • PartnerRe (Bermuda)
  • TransRe (Bermuda)
  • Arch Capital Group (Bermuda)
  • RenaissanceRe (Bermuda)
  • Generali (Italy)
  • Tokio Marine (Japan)
  • XL Catlin (Ireland)
  • AXIS Capital Holdings (Bermuda)
  • QBE Insurance Group (Australia)
  • Swiss Life (Switzerland)
  • Mapfre (Spain)

Reinsurance Market Recent Developments

  • In January 2021, Swiss Re appointed its new CEO, Christian Mumenthaler.
  • In April 2021, Munich Re acquired IoT and AI-based start-up Relayr to expand its Internet of Things (IoT) capabilities.

Reinsurance Key Market Trends

  • One key market trend in the global reinsurance market is the increasing demand for alternative risk transfer (ART) solutions. While traditional reinsurance products remain popular, there is growing interest in ART solutions such as catastrophe bonds, collateralized reinsurance, and insurance-linked securities (ILS) among insurers and reinsurers. These solutions allow risk to be spread more widely, reducing risk concentrations in traditional reinsurance products. Additionally, ART solutions can offer better pricing, more flexibility, and access to new sources of capital. The use of ART solutions is particularly attractive for insurers and reinsurers operating in areas with high exposure to natural catastrophes, such as hurricanes and earthquakes. In recent years, the use of ART solutions has grown rapidly, with the market for catastrophe bonds alone reaching a record-high of $14 billion in 2020. As climate change continues to exacerbate the frequency and severity of natural disasters, it is likely that demand for ART solutions will continue to increase in the global reinsurance market.

Reinsurance Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to the global reinsurance market analysis, The market will need to adapt to the evolving risk landscape. Emerging risks, such as cyber threats and climate-related perils, will require specialized reinsurance products and innovative risk models. Reinsurers will need to invest in technology and data analytics to accurately assess and price these risks.

The influx of alternative capital into the reinsurance market is expected to continue. Institutional investors, such as pension funds and hedge funds, are increasingly attracted to the potential returns offered by reinsurance investments. This alternative capital provides additional capacity and influences market dynamics, potentially leading to competitive pricing pressures.

Report Metric Details
Market size value in 2023 USD 498.7 billion
Market size value in 2031 USD 1255.15 billion
Growth Rate 10.8%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Property Reinsurance and Casualty Reinsurance
  • Distribution Channel
    • Brokers and Captive Insurance Companies
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Berkshire Hathaway Re (United States)
  • SCOR SE (France)
  • Lloyd's (United Kingdom)
  • Korean Re (South Korea)
  • China Re (China)
  • Everest Re (Bermuda)
  • PartnerRe (Bermuda)
  • TransRe (Bermuda)
  • Arch Capital Group (Bermuda)
  • RenaissanceRe (Bermuda)
  • Generali (Italy)
  • Tokio Marine (Japan)
  • XL Catlin (Ireland)
  • AXIS Capital Holdings (Bermuda)
  • QBE Insurance Group (Australia)
  • Swiss Life (Switzerland)
  • Mapfre (Spain)
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Reinsurance Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Reinsurance Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Reinsurance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Reinsurance Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Reinsurance Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Reinsurance Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Reinsurance Market size was valued at USD 498.7 billion in 2021 and is poised to grow from USD 552.56 billion in 2022 to USD 1255.15 billion by 2030, growing at a CAGR of 10.8% in the forecast period (2023-2030).

The reinsurance market is highly competitive and fragmented, with numerous players vying for market share. The market is dominated by several large companies. These companies have substantial financial resources, extensive underwriting capabilities, and reach. There are also many smaller and regional reinsurers that compete with players. The market is highly cyclical, with fluctuations in demand and supply driven by catastrophic events such as natural disasters and pandemics. Additionally, along with traditional reinsurance, alternative risk transfer solutions such as insurance-linked securities have gained popularity. Technological advancements, changing regulations, and shifting customer expectations are also driving changes within the industry. Overall, the reinsurance market is highly competitive, dynamic and constantly evolving. 'Munich Re (Germany)', 'Swiss Re (Switzerland)', 'Hannover Re (Germany)', 'Berkshire Hathaway Re (United States)', 'SCOR SE (France)', 'Lloyd's (United Kingdom)', 'Korean Re (South Korea)', 'China Re (China)', 'Everest Re (Bermuda)', 'PartnerRe (Bermuda)', 'TransRe (Bermuda)', 'Arch Capital Group (Bermuda)', 'RenaissanceRe (Bermuda)', 'Generali (Italy)', 'Tokio Marine (Japan)', 'XL Catlin (Ireland)', 'AXIS Capital Holdings (Bermuda)', 'QBE Insurance Group (Australia)', 'Swiss Life (Switzerland)', 'Mapfre (Spain)'

The increasing frequency and severity of catastrophic events are a major driver of the reinsurance market. With the rise in extreme weather conditions, natural disasters and pandemics, insurers are facing the challenge of managing their risk portfolios. Reinsurers, on the other hand, provide an important cushion to insurers by accepting a portion of the risk and sharing it with other insurers in the form of reinsurance. In recent years, the reinsurance market has seen significant growth due to an increase in the demand for catastrophic coverage, which has been driven by the impact of climate change on the insurance industry.

One key market trend in the reinsurance market is the increasing demand for alternative risk transfer (ART) solutions. While traditional reinsurance products remain popular, there is growing interest in ART solutions such as catastrophe bonds, collateralized reinsurance, and insurance-linked securities (ILS) among insurers and reinsurers. These solutions allow risk to be spread more widely, reducing risk concentrations in traditional reinsurance products. Additionally, ART solutions can offer better pricing, more flexibility, and access to new sources of capital. The use of ART solutions is particularly attractive for insurers and reinsurers operating in areas with high exposure to natural catastrophes, such as hurricanes and earthquakes. In recent years, the use of ART solutions has grown rapidly, with the market for catastrophe bonds alone reaching a record-high of $14 billion in 2020. As climate change continues to exacerbate the frequency and severity of natural disasters, it is likely that demand for ART solutions will continue to increase in the reinsurance market.

North America is a mature reinsurance market, with the United States being the largest market by far. North America accounted for 34% of reinsurance premiums. The market is dominated by a small group of large reinsurers, including Swiss Re, Munich Re, and Berkshire Hathaway. The North American market is also heavily influenced by catastrophic events, such as hurricanes, wildfires, and earthquakes. These events have become more frequent and severe in recent years, leading to increased demand for reinsurance.

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Global Reinsurance Market

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