Reinsurers across the globe are offering bundled products and services to enhance their revenues. This change is a result of diverse choice, attractive prices and broader coverage offered by reinsurers to gain additional market share and cut down costs. This approach has helped global reinsurers to close business deals at a group level, thereby reducing the need for reinsurance at different levels. For instance, reinsurance companies Generali and Allianz have adopted a bundled approach, enabling them to get better oversight of the global market and cut down the cost of offering reinsurance services.
REINSURANCE PROVIDERS MARKET TO REACH $305 BILLION BY 2020 ACCORDING TO THE BUSINESS RESEARCH COMPANY.
The Business Research Company expects the reinsurance providers market to grow to $305 billion in 2020. Europe was the largest geographic market in the reinsurance providers market in 2016, accounting for $101 billion. Europe is the largest market because of its high reinsurance penetration and strong distribution network. European countries also have wide range of product portfolio, which offers multiple types of reinsurance which is driving the market.
The figure below shows the year-on-year growth of the global reinsurance providers market during 2016 – 2020.
According to The Business Research Company’s Financial Consultant, the mortgage insurance category has supported the growth of the reinsurance market. Monoline mortgage insurers have resurfaced during 2014 and 2015. Mortgage insurers are seeking reinsurance to enhance their risk management strategies, and are entering into reinsurance partnerships to improve their capital levels to manage their risk.
Munich Re was the largest competitor in the reinsurance industry with revenues of $31.29 billion in the financial year 2016. As a part of the dynamic expansion in the Asia-Pacific markets, Munich Re is strengthening its operations in Tokyo, Beijing and Singapore offices and reducing or closing down operations in other locations in order to focus on local markets.
The reinsurance providers market includes establishments engaged in assuming all or part of the risk with existing insurance policies originally underwritten by other insurance providers (direct insurance carriers). Reinsurance providers invest premiums collected from insurance providers to build up a portfolio of financial assets to be used against future claims.
The reinsurance providers market is categorized on the basis of the risk type being insured against, such as death, accidents, disability, and property damage. Risk payment includes both pro-rata and excess loss reinsurance types. Contributions and premiums are set on the basis of actuarial calculations of probable payouts based on risk factors from experience tables and expected investment returns on reserves. Premiums include all types of ceded premiums and retrocession premiums.
The reinsurance providers market is broadly classified into the following:
Life Reinsurance Providers are entities engaged in assuming all or part of the risk associated with existing life insurance policies, disability income insurance policies and accidental death and dismemberment insurance policies originally underwritten by other insurance providers. This includes both government and private owned reinsurance providers. Clients of these reinsurance providers are the direct insurance providers who sell life insurance policies to the public and fellow reinsurance providers who seek retrocession to reduce/share risk. Distribution can be either through direct selling or intermediary.
Property and Casualty Reinsurance Providers are entities engaged in assuming all or part of the risk associated with existing insurance policies that protect policy holders against future uncertain losses that may occur as a result of property damage or contingent liability originally underwritten by other insurance providers. This includes both government and private owned reinsurance providers. Clients of these reinsurance providers are the direct insurance providers who sell property & casualty insurance policies to the public and fellow reinsurance providers who seek retrocession to reduce/share risk. Distribution can be either through direct selling or an intermediary.
Most reinsurance providers operate under both categories.
Reinsurance Providers Global Market Briefing is a detailed report giving a unique insight into this market. The report is priced at $750 for an individual user. To use across your office the price is $1500 and $2000 if you wish to use across a multinational company.
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