NEW
YORK, Sept. 17, 2024 /PRNewswire/ -- Report with
the AI impact on market trends- The global reinsurance market
size is estimated to grow by USD 553.8
billion from 2024-2028, according to Technavio. The market
is estimated to grow at a CAGR of 13.54% during the
forecast period. Increasing awareness of insurance products
in emerging markets is driving market growth, with a
trend towards fluctuating interest rates of reinsurance
premium. However, vulnerability to cybercrimes poses a
challenge. Key market players include Allianz SE, American
International Group Inc., AXA Group, Barents Re Reinsurance Co.
Inc., Berkshire Hathaway Inc., BMS Group Ltd., Everest Re Group
Ltd., Fairfax Financial Holdings Ltd., Great West Lifeco Inc.,
Hannover Re, Korean Reinsurance Co., MS and AD Insurance Group
Holdings Inc., Munich Reinsurance Co., PartnerRe Ltd., QBE
Insurance Group Ltd., Reinsurance Group of America Inc.,
RenaissanceRe Holdings Ltd., SCOR SE, Swiss Re Ltd., and The Toa
Reinsurance Co. Ltd..
AI-Powered Market Evolution Insights. Our
comprehensive market report ready with the latest trends, growth
opportunities, and strategic analysis- View your snapshot
now
Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Product (Non-life
reinsurance and Life reinsurance), Type (Facultative reinsurance
and Treaty reinsurance), and Geography (Europe, APAC, North
America, Middle East and Africa, and South America)
|
Region
Covered
|
Europe, APAC, North
America, Middle East and Africa, and South America
|
Key companies
profiled
|
Allianz SE, American
International Group Inc., AXA Group, Barents Re Reinsurance Co.
Inc., Berkshire Hathaway Inc., BMS Group Ltd., Everest Re Group
Ltd., Fairfax Financial Holdings Ltd., Great West Lifeco Inc.,
Hannover Re, Korean Reinsurance Co., MS and AD Insurance Group
Holdings Inc., Munich Reinsurance Co., PartnerRe Ltd., QBE
Insurance Group Ltd., Reinsurance Group of America Inc.,
RenaissanceRe Holdings Ltd., SCOR SE, Swiss Re Ltd., and The Toa
Reinsurance Co. Ltd.
|
Key Market Trends Fueling Growth
The reinsurance market experiences fluctuations in interest
rates due to several factors, including the introduction of
substitute products and macroeconomic conditions such as
international business environments, tax reforms, policy decisions,
and demographic shifts. These factors impact the demand and supply
of reinsurance. For instance, in 2023, Allianz, AXA, and
Zurich reported a decline in new
business volumes in life insurance due to increased competition and
lower savings rates. Consequently, investment income and IFRS
shareholders' capital decreased due to bond portfolio fair value
adjustments. Despite this, the insurers' financial performance
remained good, allowing them to use pricing power to mitigate the
effects of high inflation on earnings and capital. The interest
rates of reinsurance premiums continue to be a significant trend in
the global reinsurance market, with ongoing demographic and
economic changes driving further variation.
Reinsurance is a crucial segment of the insurance industry where
insurers transfer risks to reinsurers. Reinsurers, as the ceding
companies' partners, assume a portion of the insured risks in
exchange for premiums. This allows insurers, or cedents, to spread
their risk and improve their underwriting capabilities. Reinsurance
contracts come in various forms, such as facultative coverage,
proportional reinsurance, and excess-of-loss reinsurance.
Catastrophic events and large claims can significantly impact
insurers' solvency and financial burden. Reinsurance helps insurers
manage these risks by providing coverage for large payouts.
Reinsurers assess the risk and determine the capacity to accept it
based on their underwriting results and financial situation.
Reinsurance brokers and intermediaries play a vital role in
facilitating these transactions. Treaty reinsurance and facultative
reinsurance are common types of reinsurance contracts. Reinsurers
may also offer retrocession, where they reinsure their own risks to
other reinsurers. Capacity, expertise, and financial strength are
essential factors for reinsurers. Collateral, licensing, and
regulatory compliance are also crucial. Insolvency, cut-through
provisions, and RCAT charges are risks that insurers and reinsurers
need to manage. Reinsurance plays a vital role in financing
catastrophe protection and managing liability risks. It allows
insurers to offer comprehensive insurance policies while managing
their financial burden effectively.
Insights on how AI is driving innovation,
efficiency, and market growth- Request Sample!
Market Challenges
- The reinsurance industry is increasingly relying on technology
for business efficiency and management, with the shift towards
online and on-device data storage. However, this reliance on
technology also brings risks, particularly in the form of
cybercrime. Data breaches, hacking, and intrusion into intranet
portals can lead to the misappropriation and sale of confidential
client information to competitors. Cybersecurity failures or misuse
of data could result in significant financial losses for
organizations. A recent proposal by Lloyds of London to exclude
state-backed cyber-attacks from standard cyber insurance policies
could lead to disputes between insurers and insured businesses.
Industry leaders argue that state-backed attacks could create
systemic risks leading to large, difficult-to-quantify losses, as
seen in the USD2.7 billion loss from
the Petya/NotPetya cyber-attack due to silent cyber exposures. It
is crucial for the industry to address cybersecurity risks at their
source to mitigate potential financial and reputational
damage.
- The reinsurance market helps insurers manage their risk and
financial burden by transferring portions of their insurance
portfolio to licensed reinsurers. Two common types are facultative
coverage and proportional reinsurance. In facultative, insurers
select individual risks for reinsurance, while proportional
reinsurance applies to entire portfolios. Excess-of-loss
reinsurance and risk-attaching reinsurance offer catastrophic event
protection. Coverage periods, cut-through provisions, and
insolvency are essential considerations. Capacity, underwriting
results, financing, and catastrophe protection are key factors in
choosing a reinsurer. Intermediaries like reinsurance brokers
facilitate these transactions. Risk spreading, expertise, and
treaty reinsurance are other essential elements. Reinsurers may use
retrocession to transfer risk to other reinsurers. Liability,
premium, and natural disasters like hurricanes, wildfires, and
earthquakes are common risks. Emerging nations with low insurance
penetration pose challenges. Technology, such as artificial
intelligence and machine learning, is transforming the market.
Innovations like insurance-linked securities and catastrophe
reinsurance bonds provide alternative financing options. However,
unauthorized and certified reinsurers, collateral, and regulatory
issues like plenary and RCAT charges can complicate matters.
Insights into how AI is reshaping industries and
driving growth- Download a Sample Report
Segment Overview
This reinsurance market report extensively covers market
segmentation by
- Product
- 1.1 Non-life reinsurance
- 1.2 Life reinsurance
- Type
- 2.1 Facultative reinsurance
- 2.2 Treaty reinsurance
- Geography
- 3.1 Europe
- 3.2 APAC
- 3.3 North America
- 3.4 Middle East and
Africa
- 3.5 South America
1.1 Non-life reinsurance- The reinsurance
market plays a crucial role in risk management for insurers.
Reinsurers assume large risks from primary insurers, spreading risk
among various parties. This risk pooling reduces financial
volatility for insurers and enables them to offer a wider range of
insurance products. Reinsurers also provide expertise and resources
to help insurers manage complex risks effectively. The market is
competitive, with various reinsurers offering different pricing
structures and coverage terms. Effective risk assessment and
underwriting are essential for reinsurers to remain profitable and
competitive.
Download complimentary Sample Report to
gain insights into AI's impact on market dynamics, emerging trends,
and future opportunities- including forecast (2024-2028) and
historic data (2018 - 2022)
Research Analysis
Reinsurance is a critical segment of the insurance industry
where an insurer transfers some or all of its risks to a reinsurer.
Reinsurance contracts help insurers manage their risk portfolios,
spread risk, and ensure financial stability. Reinsurers, as
reinsurance experts, assume the risk from the insurer, known as the
ceding party or cedent. The insured risk can be any type of
liability, from natural disasters like hurricanes, wildfires, and
earthquakes to man-made risks. Reinsurance brokers act as
intermediaries, facilitating negotiations between insurers and
reinsurers. Retrocession is the practice of reinsurers transferring
risks to other reinsurers. Regulatory changes, artificial
intelligence, machine learning, insurance-linked securities,
emerging nations, and insurance penetration are current trends
influencing the reinsurance market. Unauthorized reinsurers and
licensed reinsurers operate in qualified jurisdictions, with
certified reinsurers adhering to stringent regulatory standards.
Regulatory changes and emerging risks, such as climate change, pose
challenges for the reinsurance industry.
Market Research Overview
Reinsurance is a critical segment of the insurance industry
where an insurer transfers portions of an insurance risk from an
insurance policy to a reinsurer. Reinsurance contracts help
insurers manage their risk exposure and financial burden by
spreading it across multiple parties. Reinsurers provide expertise
and capacity to insurers, acting as a safety net during
catastrophic events. Insured risks are covered through various
types of reinsurance contracts, including facultative coverage,
proportional reinsurance, and excess-of-loss reinsurance. The
coverage period, underwriting capabilities, and capacity of
reinsurers are crucial factors in determining the terms of these
contracts. Risk-attaching reinsurance and treaty reinsurance are
two primary types of reinsurance agreements. In risk-attaching
reinsurance, the reinsurer covers risks above a certain threshold,
while in treaty reinsurance, the reinsurer agrees to cover a
percentage of losses under an insurance policy. Reinsurers can
provide catastrophe protection and insolvency protection to
insurers, helping them manage financial burdens during natural
disasters and insolvency events. Capacity, underwriting results,
and financing are essential factors for reinsurers in managing
their risk exposure. Reinsurance brokers and intermediaries play a
vital role in facilitating reinsurance transactions, while
retrocession is a common practice where reinsurers transfer
portions of their risk to other reinsurers. Liability, collateral,
and licensing are important considerations for reinsurers, as well
as emerging trends like artificial intelligence, machine learning,
insurance-linked securities, and catastrophe reinsurance bonds. The
insurance industry's growth in emerging nations and increasing
insurance penetration create opportunities for reinsurers to expand
their business and provide coverage to new markets. However,
insurers must navigate complex regulatory environments and ensure
they work with licensed, certified, and authorized reinsurers to
mitigate risks and maintain solvency.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Product
-
- Non-life Reinsurance
- Life Reinsurance
- Type
-
- Facultative Reinsurance
- Treaty Reinsurance
- Geography
-
- Europe
- APAC
- North America
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ai-driven-transformation-in-reinsurance-market-projected-usd-553-8-billion-growth-2024-2028-with-rising-insurance-awareness-in-emerging-markets---technavio-302250737.html
SOURCE Technavio