The life and health reinsurance market reached a value of nearly $152.8 billion in 2021, having grown at a compound annual growth rate (CAGR) of 4.5% since 2016. The market is expected to grow from $152.8 billion in 2021 to $200.3 billion in 2026 at a rate of 5.6%. The market is then expected to grow at a CAGR of 4.7% from 2026 and reach $252.1 billion in 2031.
Growth in the historic period resulted from strong economic growth in emerging markets, government-led insurance reforms, rising healthcare costs and an increase in natural disasters. Going forward, an increase in chronic diseases and disabilities, 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 market in the future include consumers considering insurance as non-investment grade and additional charges by insurance brokers.
The life and health reinsurance market is segmented by type into facultative reinsurance and treaty reinsurance. The treaty reinsurance market was the largest segment of the life and health reinsurance market by type, accounting for 83.7% of the total in 2021. Going forward, the treaty reinsurance segment is expected to be the fastest-growing segment in the life and health reinsurance market by type, at a CAGR of 6.0% during 2021-2026.
The life and health reinsurance market is also segmented by distribution channel into direct response, agents and brokers and banks. The direct response market was the largest segment of the life and health reinsurance market by distribution channel, accounting for 47.3% of the total in 2021. Going forward, the banks segment is expected to be the fastest-growing segment in the life and health reinsurance market by distribution channel, at a CAGR of 5.8% during 2021-2026.
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The life and health reinsurance market is also segmented by product into life and health. The life market was the largest segment of the life and health reinsurance market by product, accounting for 59.9% of the total in 2021. Going forward, the health segment is expected to be the fastest-growing segment in the life and health reinsurance market by product, at a CAGR of 6.4% during 2021-2026.
North America was the largest region in the life and health reinsurance market, accounting for 46.9% of the total in 2021. It was followed by Western Europe, and then the other regions. Going forward, the fastest-growing regions in the life and health reinsurance market will be South America and Africa where growth will be at CAGRs of 7.4% and 7.0% respectively. These will be followed by Asia Pacific and the Middle East where the markets are expected to grow at CAGRs of 6.0% and 6.0% respectively.
The life and health reinsurance market is highly fragmented, with a large number of players. The top ten competitors in the market made up to 52.42% of the total market in 2021. Swiss Re Ltd. was the largest competitor with 10.52% share of the market, followed by Munich Reinsurance Company with 9.71%, SCOR S.E. with 7.24%, China Reinsurance (Group) Corporation with 6.61 %, Hannover Rück S.E. with 6.60%, Berkshire Hathaway Inc. with 4.63%, Reinsurance Group of America Inc. with 4.37 %, PartnerRe Ltd. with 1.08%, Taiping Reinsurance Co. Ltd. with 0.92%, and Korean Reinsurance Company with 0.75%.
The top opportunities in the life and health reinsurance market segmented by type will arise in the treaty reinsurance segment, which will gain $43.2 billion of global annual sales by 2026. The top opportunities in the life and health reinsurance market segmented by distribution channel will arise in the direct response segment, which will gain $21.9 billion of global annual sales by 2026. The top opportunities in the life and health reinsurance market segmented by product will arise in the life segment, which will gain $25.3 billion of global annual sales by 2026. The life and health reinsurance market will gain the most in the USA at $17.5 billion.
Market-trend-based strategies for the life and health reinsurance market include adoption of automated reinsurance platforms, increasing applications of artificial intelligence, use of blockchain technology and increasing number of mergers and acquisitions.
Player-adopted strategies in the life and health reinsurance industry include offering digital solutions, expanding business through strategic acquisitions and partnerships and increasing investments in new products and services.
To take advantage of the opportunities, Altus Market Research recommends the life and health reinsurance companies to adopt automated reinsurance platforms, adopt artificial intelligence (AI), use blockchain technology, 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 health insurance companies.
