Reinsurance Market

Reinsurance Market Expected to Reach US$ 364.59 Bn by 2026
According to
a
new market
report published by Transparency Market
Research titled “Reinsurance Market – Global Industry Analysis, Size, Share, Growth,
Trends, and Forecast, 2018 – 2026,” the global reinsurance market was valued at US$ 241.14
Bn in 2017 and is expected to expand at a CAGR of 4.7% from 2018 to 2026, reaching a value of
US$ 364.59 Bn by the end of the forecast period. According to the report, North America was a
significant contributor to the reinsurance market in terms of revenue in 2017. The prominent
market share of the region is due to the favorable regulatory environment and growth in property
catastrophe protection in the reinsurance market across the region, especially in the U.S. and
Canada.
Favorable regulatory environment and growth in property catastrophe protection driving
the global reinsurance market
The global reinsurance market is currently driven by a favorable regulatory environment.
Growing focus on sustainable growth has led to the relaxation in government rules globally. For
instance, in September 2018, Insurance Regulatory and Development Authority (IRDA)
approved revised reinsurance regulations in India. The core purpose behind revamping the
regulations is that the maximum reinsurance business is held inside the nation and preference
would be given to Indian domiciled entities. In 2016, the new SSN (Superintendence of
Insurance) authorities removed the regulations which set minimum limits of insurers in projects
involving small and medium enterprise. The new regulation now defines only maximum limits.
Current regulatory variations are pushing the market to have fewer number of highly capitalized
insurance companies. There are a large number of local players that need more capital to play in
niche markets. Subsequently, demand for financial reinsurance is expected to increase in the
coming years. Furthermore, increasing activity of foreign reinsurers in the global reinsurance
market is contributing significantly to the growth of the market. Thus, increasing regulatory
oversight initiatives is expected to enhance reinsurance penetration, as they are expected to
promote self-assurance in the insurance industry. Therefore, a favorable regulatory environment
is expected to have a long term impact on the reinsurance market. Growing number of such
favorable regulations by several government entities are expected to boost the reinsurance
market in the coming years.
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Demand for property catastrophe protection is expected to contribute significantly to insurance
renewals, provisioning any material reinsured loss. Furthermore, industries such as aviation,
marine, automotive, healthcare, and agriculture are expected to show huge growth due to the
high insurance penetration combined with the need to guard high value assets. Moreover,
occurrence of natural calamities is encouraging individuals to avail reinsurance. Lack of
disposable income is one of the major factors limiting the market growth. However, rising
economic activities across the globe is expected to enhance investment in the insurance sector in
the near future. The impact of this restraint is expected to remain low in the coming years.
Reinsurance Market: Scope of the Report
Based on distribution channel, the global reinsurance market has been segmented into direct
writing and broker. The broker segment is expected to expand at a higher CAGR, thus becoming
the leading revenue generating segment by 2026. This is primarily because of increase in number
of brokers, especially across North America and Europe. Based on end-user, the global
reinsurance market has been segmented into life & health reinsurance companies and nonlife/property & casualty reinsurance companies. Furthermore, based on region, the global
reinsurance market has been segmented into North America, Asia Pacific, Europe, South
America, and Middle East & Africa.
Global Reinsurance Market: Competitive Dynamics
Key players operating in the global reinsurance market include Barents Re Reinsurance, Inc.,
Berkshire Hathaway Inc., BMS Group Ltd., China Reinsurance (Group) Corporation, Everest Re
Group, Ltd., Hannover Re, IRB-Brasil Resseguros S.A., Lloyd's, Munich Re, Odyssey
Reinsurance, PartnerRe, Reinsurance Group of America, Incorporated, SCOR SE, and Swiss RE
Group.

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