According to a report by Altus Market Research titled, “Reinsurance Providers Global Market 2022-2031 by Type(Property/Casualty Reinsurance Providers; Life/Health Reinsurance Providers); Distribution Channel(Direct Writing; Broker); Mode(Online; Offline), By Organization Location(Domestic; International)“, the global reinsurance providers market reached a value of nearly $512.55 million in 2021, having grown at a compound annual growth rate (CAGR) of 5.6% since 2016. The market is expected to grow from $512.55 million in 2021 to $756.56 million in 2026 at a rate of 8.1%. The market is then expected to grow at a CAGR of 7.2% from 2026 and reach $1,068.74 million in 2031.
Growth in the historic period resulted from strong economic growth in emerging markets, insurance reforms led by the government, rising healthcare costs and an increase in natural disasters. Factors that negatively affected growth in the historic period were increasing popularity of self-insurance, low insurance penetration in undeveloped countries and lack of awareness. Going forward, increased incidence of chronic illnesses and incapability, impact of COVID-19, growing middle-class population in emerging markets, and a rise in claims in the life insurance sector will drive market growth. Factors that could hinder the growth of the reinsurance providers market in the future include additional charges by insurance brokers.
The reinsurance providers market is highly fragmented, with a large number of large players dominating the market. The top ten competitors in the market made up to 42.90% of the total market in 2021. The market concentration can be attributed to the high entry barriers and high costs associated with expansion. Going forward the market is expected to experience further consolidation with the rising number of mergers and collaboration among players in the market. Munich Reinsurance Company was the largest competitor with 9.53% share of the market, followed by Swiss Re Ltd. with 7.67%, Hannover Re with 6.40%, SCOR SE with 4.06%, Berkshire Hathaway Inc. with 3.94%, Landstar China Reinsurance Group Corp. with 3.35%, Lloyd’s with 2.72%, Reinsurance Group of America Inc. with 1.95%, Everest Re Group Ltd. with 1.77%, and Korean Reinsurance Co. with 1.51%.
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Market Growth by Segments:
The reinsurance providers market is segmented by type into property and casualty reinsurance providers and life and health reinsurance providers. The property and casualty reinsurance providers market was the largest segment of the reinsurance providers market segmented by type, accounting for 70.2% of the total in 2021. Going forward, the property and casualty reinsurance providers segment is expected to be the fastest growing segment in the reinsurance providers market segmented by type, at a CAGR of 9.1% during 2021-2026.
Market Growth distribution channel
The reinsurance providers market is also segmented by distribution channel into direct writing and broker. The reinsurance broker market was the largest segment of the reinsurance providers market segmented by distribution channel, accounting for 53.0% of the total in 2021. Going forward, the direct writing segment is expected to be the fastest growing segment in the reinsurance providers market segmented by distribution channel, at a CAGR of 8.3% during 2021-2026.
The reinsurance providers market is also segmented by mode into online and offline. The offline market was the largest segment of the reinsurance providers market segmented by mode, accounting for 94.6% of the total in 2021. Going forward, the online segment is expected to be the fastest growing segment in the reinsurance providers market segmented by mode, at a CAGR of 16.5% during 2021-2026.
The reinsurance providers market is also segmented by organization location into domestic and international. The international market was the largest segment of the reinsurance providers market segmented by organization location, accounting for 73.9% of the total in 2021. Going forward, the domestic segment is expected to be the fastest growing segment in the reinsurance providers market segmented by organization location, at a CAGR of 9.2% during 2021-2026.
Market Growth by Region:
Western Europe was the largest region in the reinsurance providers market, accounting for 42.3% of the total in 2021. It was followed by Asia Pacific, and then the other regions. Going forward, the fastest-growing regions in the reinsurance providers market will be Asia Pacific and Eastern Europe where growth will be at CAGRs of 9.6% and 9.5% respectively. These will be followed by Africa and North America where the markets are expected to grow at CAGRs of 9.1% and 8.3% respectively.
Future Investment Opportunities:
The top opportunities in the reinsurance providers market segmented by type will arise in the general property and casualty reinsurance providers and life and health reinsurance providers, which will gain $756.56 million of global annual sales by 2026. The top opportunities in the reinsurance providers market segmented by distribution channel will arise in the broker segment, which will gain $125.8 million of global annual sales by 2026. The top opportunities in the reinsurance providers market segmented by mode will arise in the offline segment, which will gain $212.3 million of global annual sales by 2026. The top opportunities in the reinsurance providers market segmented by organization location will arise in the international segment, which will gain $170.3 million of global annual sales by 2026. In 2026, the reinsurance providers market will gain the most in the USA at $52.8 million.
Market: Trend-based Strategies
Market-trend-based strategies for the reinsurance providers market include focus on offering personalized and customized reinsurance products, adoption of automated reinsurance platforms, use of artificial intelligence (AI), adoption of blockchain technology and increased focus on providing cybersecurity reinsurance.
To take advantage of the opportunities, Altus Market Research recommends the reinsurance providers companies to offer personalized products, adopt automated reinsurance platforms, use artificial intelligence (AI), focus on blockchain technology, prioritize cybersecurity reinsurance, expand in emerging markets, offer competitive pricing, adopt risk-based pricing, continue to participate in events and conferences, leverage social media, focus on offering products based on consumer preferences and increase focus on online reinsurance.
Other Players Covered in the report:
China Reinsurance Group Corp., Lloyd’s Reinsurance Group of America Inc., Everest Re Group Ltd., Korean Reinsurance Co., General Insurance Corporation of India (GIC Re), China Life Reinsurance Company Ltd, China Property and Casualty Reinsurance Company Ltd, Allianz (China) Insurance Holding Co., Ltd, PICC Reinsurance Co. Ltd. (China), Taiping Reinsurance Co. Ltd. (Hong Kong), Peak Reinsurance Co. Ltd. (Hong Kong), SCOR Reinsurance Co. (Asia) Ltd. (Hong Kong), Tokio Marine & Nichido Fire Insurance Co. Ltd. (Japan), Aioi Nissay Dowa Insurance Co. Ltd. (Japan), Sompo Japan Nipponkoa Insurance Inc. (Japan), Toa Reinsurance Co. (Japan), Mitsui Sumitomo Insurance Co. Ltd. (Japan), PVI Reinsurance Company (Vietnam), Singapore Reinsurance Corporation Ltd, Allianz Global (Germany), AXA France Vie (France), Sogaz Insurance Group (Russia), Ingosstrakh Insurance Co (Russia), Russian Re Co. Ltd, Polskie Towarzystwo Reasekuracji S.A, NN Life (Netherlands), VIG RE zajist’ovna a.s (Czech), Cigna (US), Humana (US), State Farm, Allstate, USAA, UnitedHealth Group (UNH), Manulife Financial Corporation, Great-West Lifeco, Desjardins, Sun Life Financial, Fairfax Financial, Grupo Nacional Provincial, Metlife Mexico, Seguros BBVA Bancomer, AXA Seguros, Banorte Seguros, National Indemnity Company, Everest Reinsurance Company, XL Reinsurance America, Instituto de Resseguros do Brasil (IRB), Terra Brasis, Banco BTG and Austral Re, RGA Reinsurance Company, Bradesco (Brazil), Brasilprev (Brazil), Itau (Brazil), Grupo Sura (Colombia), Porto Seguro (Brazil), Buruj Cooperative Insurance, Al Alamiya, Menora Mivtachim Insurance, Oman Insurance Company, Mashreq bank, MetLife UAE, Trust Re (Bahrain), IGI(UAE), ARIG(Bahrain), Saudi Re (Saudi Arabia), Hannover ReTakaful (Bahrain), Kuwait Re (Kuwait), Arab Re (Lebanon), Africa Re, RGA Re, African Reinsurance Corporation, Compagnie Centrale de Réassurance, Société Centrale de Réassurance, Misr Insurance, Metlife Egypt, Allianz Life Egypt, GIG Egypt
