Reinsurance Market size to record USD 358.03 billion growth from 2023-2027, Fluctuating interest rates of reinsurance premium is one of the key market trends, Technavio

Press Releases

Apr 24, 2024

NEW YORK, April 24, 2024 /PRNewswire/ — The global reinsurance market size is estimated to grow by USD 358.03 billion from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 10.26% during the forecast period.

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Key Trends Fueling Growth:

Fluctuating interest rates of reinsurance premiums:

The number of substitute products and various macroeconomic factors, such as international business conditions, tax reforms, policy decisions, and demographic shifts, have led to a change in the interest rates of insurance premiums. These interest rates decide the demand and supply of reinsurance and vice versa.
The reinsurance market has witnessed variations in interest rates in the last decade. These variations are a result of the fluctuations in demand, dynamic market conditions, and buying behaviour of end-users.
For instance, on April 13, 2023, Allianz, AXA, and Zurich noted that new business volumes in life insurance declined due to intense competition from banks and lower savings rates of private households.
Investment income and IFRS shareholders’ capital declined in response to fair value adjustments on insurers’ bond portfolios. Thus, the fluctuating interest rates of reinsurance premiums are a growing trend in the global reinsurance market during the forecast period.

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Major Challenge

Vulnerability to cybercrimes:

The reinsurance industry can be affected by the misappropriation of data on the device. Any cybersecurity failure or misuse of data can expose an organization’s information to hackers. It could also lead to high monetary loss.
According to experts, state-backed attacks could lead to large losses that are difficult to quantify. For instance, because of silent cyber exposure, an insurance and reinsurance business lost about USD 2.7 billion from the Petya/NotPetya cyber-attack.
Silent cyber exposures could happen when other sorts of insurance or reinsurance products fail to eliminate cyber risks, which possibly leads to an accumulation of cyber losses.

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Analyst Review

The Reinsurance Market plays a crucial role in risk management for Insurers, acting as the Ceding Party or Cedent, to transfer Insured Risks from Insurance Policies to Reinsurers. Reinsurers, being Licensed Reinsurers or even Unauthorized Reinsurers, assume a significant portion of the risk, protecting the Insurer from potential Liabilities.

Reinsurance Brokers and Intermediaries facilitate these transactions. Retrocession is also common, where Reinsurers reinsure their own risks. Regulatory changes, natural disasters such as Hurricanes, Wildfires, and Earthquakes, and emerging nations with low Insurance Penetration pose challenges. Advanced technologies like Artificial Intelligence and Machine Learning are transforming the industry, while Insurance-Linked Securities offer alternative risk financing solutions. Qualified Jurisdictions and Certified Reinsurers ensure regulatory compliance and risk mitigation.

Market Overview

The Reinsurance Market plays a crucial role in the risk management landscape. Reinsurers provide coverage for catastrophic risks, enabling primary insurers to offer comprehensive insurance policies to their clients. Reinsurance contracts help insurers manage their risk exposure, providing financial security and stability.

Reinsurance companies offer various products, including treaty reinsurance, facultative reinsurance, and retrocession. These contracts can be classified based on their geographical scope, such as global, regional, or local reinsurance. Reinsurance is essential for underwriting profitability and maintaining financial solvency.

The reinsurance industry is subject to regulatory oversight, ensuring that reinsurers maintain adequate capital and comply with risk management guidelines. Reinsurers also employ various risk modeling techniques, such as actuarial models and catastrophe models, to assess and manage risk.

Ultimately, the reinsurance market facilitates the transfer of risk from insurers to reinsurers, enabling the insurance industry to provide coverage for a wide range of risks.

Key Topics Covered:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
7 Customer Landscape

Product

Non-life Reinsurance
Life Reinsurance

Type

Facultative Reinsurance
Treaty Reinsurance

Geography

Europe
APAC
North America
Middle East And Africa
South America

8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor 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
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