The Latest Reinsurance Industry Statistics Explained
The global reinsurance market size was valued at USD 221.32 billion in 2020.
The statistic indicates that the overall size of the global reinsurance market, which involves insurance companies buying insurance to protect themselves against large losses, was estimated to be USD 221.32 billion in the year 2020. This value represents the total amount of premiums paid by primary insurers to reinsurers for transferring a portion of their risks. The reinsurance market plays a crucial role in providing financial stability and support to the insurance industry by spreading risk across multiple parties. The valuation of USD 221.32 billion underscores the significant scale and importance of the global reinsurance market in mitigating risks and ensuring the resilience of the insurance sector.
It is projected to register a compound annual growth rate (CAGR) of 3.8% from 2021 to 2028.
The statistic indicates that over the period from 2021 to 2028, there is an expected average annual growth rate of 3.8% for the variable being measured. This compound annual growth rate (CAGR) takes into account the compounding effect of growth over multiple years, providing a more accurate representation of the overall growth trend compared to a simple average. This projection suggests a steady increase in the variable of interest over the specified time frame, highlighting a positive trend in the growth trajectory.
In 2020, the non-life reinsurance segment accounted for the highest revenue share.
The statement “In 2020, the non-life reinsurance segment accounted for the highest revenue share” indicates that among all segments within the reinsurance industry, the non-life reinsurance segment generated the largest proportion of total revenue in the year 2020. This suggests that a significant portion of the overall reinsurance market’s financial activity and profitability during that period was driven by non-life reinsurance transactions. It is crucial for stakeholders in the insurance and reinsurance industries to understand these revenue dynamics to make informed decisions regarding investment, risk management, and strategic planning.
47% of global reinsurers’ total gross written premiums were attributable to the European region in 2019.
The statistic ‘47% of global reinsurers’ total gross written premiums were attributable to the European region in 2019′ indicates that nearly half of the total premium income generated by global reinsurers in 2019 came from business activities in Europe. Reinsurers are companies that provide insurance to other insurance companies, helping them manage their risks. The high proportion of premiums from the European region suggests that European insurance markets play a significant role in the global reinsurance industry. This statistic highlights the importance of the European market for reinsurers and the strong presence and activity of reinsurers within Europe in 2019.
Asia is expected to exhibit the highest CAGR of 4.2% from 2021 to 2028 in the reinsurance market.
This statistic indicates that Asia is projected to experience the highest Compound Annual Growth Rate (CAGR) of 4.2% in the reinsurance market between the years 2021 and 2028. A CAGR of 4.2% suggests a steady and sustainable growth rate for the reinsurance market in the Asia region over the specified time period. This trend points towards increasing demand and opportunities for reinsurance products and services, potentially driven by economic growth, regulatory changes, and rising insurance penetration in the region. The forecasted high CAGR highlights Asia as a key region for reinsurance market growth in the coming years, attracting the attention of industry players and investors looking to capitalize on these opportunities.
Reinsurance companies in the U.S. wrote $48.7 billion in net premiums in 2019.
The statistic “Reinsurance companies in the U.S. wrote $48.7 billion in net premiums in 2019” indicates the total amount of premiums that reinsurance companies in the United States collected from their policyholders after deducting reinsurance premiums ceded to other reinsurers. This figure represents the revenue generated by these companies through selling reinsurance coverage to primary insurance companies to help manage their risk exposures. The substantial amount of $48.7 billion highlights the significant role that reinsurance plays in transferring and spreading risks within the insurance industry, indicating the size and importance of the reinsurance sector in the U.S. market during the specified year.
From 1990 to 2017, the reinsurance market contributed to absorbing around $180 billion in US catastrophe losses.
The statistic “From 1990 to 2017, the reinsurance market contributed to absorbing around $180 billion in US catastrophe losses” highlights the significant role that reinsurance plays in managing and mitigating the financial impact of catastrophic events. Reinsurance is essentially insurance for insurance companies, where they transfer a portion of their risk to another entity. In the context of US catastrophe losses, reinsurers have been instrumental in providing financial support to primary insurance companies in the aftermath of events such as hurricanes, earthquakes, and other natural disasters. By absorbing a substantial portion of the losses incurred, reinsurance helps ensure the stability and resilience of the insurance industry, allowing it to continue providing coverage to policyholders despite large-scale disasters. This statistic underscores the crucial function of reinsurance in spreading risk and maintaining the financial health of the insurance sector.
There were 130 active reinsurers operating in the U.S. in 2019.
The statistic that there were 130 active reinsurers operating in the U.S. in 2019 indicates the number of companies providing reinsurance services within the U.S. market during that year. Reinsurance is a type of insurance that insurance companies purchase to protect themselves from excessive losses due to large claims or catastrophes. The presence of 130 active reinsurers suggests a competitive landscape within the U.S. reinsurance industry, providing options for primary insurers to manage their risk exposure and for consumers to have access to a variety of reinsurance products. This information can be valuable for industry analysts, regulators, and policymakers in understanding the dynamics of the reinsurance sector and its potential impact on the broader insurance market.
In Japan, net premiums written by the reinsurance segment was valued at JPY 534.2 billion in 2018.
The statistic states that in Japan, the reinsurance segment generated a total of JPY 534.2 billion in net premiums written in the year 2018. Net premiums written represent the total amount of premiums collected by an insurance or reinsurance company after deductions for reinsurance ceded, return premiums, and cancellations. This statistic indicates the level of business activity within the reinsurance sector in Japan during that particular year, suggesting that there was a substantial amount of premium income from policies underwritten by reinsurance companies operating in the country. This figure provides insight into the financial performance and scale of the reinsurance market in Japan for the specified time period.
In the UK, the reinsurance providers market is expected to grow from $29.9 billion in 2020 to $33.8 billion in 2021.
The statistic states that the reinsurance providers market in the UK is projected to experience growth from $29.9 billion in 2020 to $33.8 billion in 2021. This indicates an expected increase of $3.9 billion, representing a growth rate of approximately 13% year-over-year. Such growth in the reinsurance market suggests increased demand for reinsurance services in the UK, potentially driven by factors such as regulatory changes, climate risks, or market dynamics. This growth projection can impact various stakeholders in the insurance and financial industries, influencing premiums, underwriting practices, and overall risk management strategies within the sector.
82.1% of Brazilian reinsurance companies are locally incorporated, while only 17.9% are admitted reinsurers.
The statistic indicates that the majority (82.1%) of reinsurance companies operating in Brazil are locally incorporated, meaning that they are registered and established within the country. On the other hand, a smaller proportion (17.9%) are admitted reinsurers, which are foreign companies authorized to operate in the Brazilian reinsurance market. This distribution suggests a dominance of domestic players in the Brazilian reinsurance industry, which may have implications for competition, regulatory oversight, and market dynamics within the sector. The presence of both local and foreign reinsurers in the market could offer various options for cedents seeking reinsurance coverage, potentially reflecting a diverse and evolving reinsurance landscape in Brazil.
The total gross written premium in India’s reinsurance market was over INR 500 billion in the financial year 2020.
The statistic indicates that the total gross written premium in India’s reinsurance market exceeded INR 500 billion during the financial year 2020. Gross written premium represents the total amount of premiums collected by an insurance or reinsurance company before deducting reinsurance and commission expenses. This figure highlights the significant size and activity within India’s reinsurance market during the specified financial year, underscoring the importance of reinsurance in the country’s insurance industry. The substantial amount of gross written premium indicates a robust demand for reinsurance coverage and reflects the scale of risks being transferred to reinsurers by primary insurers in India.
In China, the reinsurance premium increased by 18.5% year-on-year to CNY 254.57 billion in 2019.
The statistic indicates that in China, the reinsurance premium experienced a significant growth of 18.5% compared to the previous year, reaching a total of CNY 254.57 billion in 2019. This implies that there was a notable increase in the amount of insurance that primary insurance companies ceded to reinsurers to manage their risk exposure. Such growth suggests a growing recognition of the importance of reinsurance in the Chinese insurance market, potentially driven by factors like increased awareness of risk management practices and the need for financial protection against unforeseen events. This upward trend in reinsurance premium also signifies a positive outlook for the reinsurance sector in China.
In Australia, the reinsurance market was valued at AUD 18.7 billion in 2021.
The statistic “In Australia, the reinsurance market was valued at AUD 18.7 billion in 2021” indicates the total worth of the reinsurance market in Australia for the specific year. Reinsurance refers to the practice of insurance companies transferring a portion of their risk portfolios to other parties to reduce their exposure to large losses. The value of AUD 18.7 billion reflects the total premiums paid by Australian insurance companies to reinsurers to provide coverage for their policies. This statistic highlights the significant role that reinsurance plays in the Australian insurance industry, providing financial stability and risk management for insurers operating in the market.
As of December 31, 2020, there are 54 licensed reinsurers in the Canadian reinsurance market.
The statistic indicates that as of December 31, 2020, there are a total of 54 licensed reinsurers operating within the Canadian reinsurance market. Reinsurers are entities that provide insurance to insurance companies, helping them manage risk by spreading it across multiple entities. The presence of 54 licensed reinsurers in the Canadian market suggests a diverse range of options available for insurance companies looking to offload some of their risk. This level of competition may lead to more favorable terms for insurance companies and potentially lower costs for consumers. It also indicates a robust and competitive reinsurance market landscape in Canada, which likely benefits the overall stability and efficiency of the insurance industry in the country.
According to AM Best data, the property/casualty reinsurers reported an underwriting gain of $5.3 billion in 2019.
The statistic indicates that in 2019, property/casualty reinsurers collectively reported a significant underwriting gain of $5.3 billion according to data from AM Best. An underwriting gain occurs when the premiums collected by insurance companies exceed the claims and expenses incurred during a specific period. This positive underwriting gain suggests that the property/casualty reinsurance industry as a whole was able to effectively manage risks and price their policies in a way that generated profits from underwriting activities in 2019. This statistic reflects the financial health and profitability of the reinsurance market during that year.
In 2021, global life reinsurance premiums are projected to decrease by 2-3%.
The statistic indicates that there is an expected decrease of 2-3% in global life reinsurance premiums in the year 2021 compared to the previous year. Reinsurance refers to the practice where insurance companies transfer a portion of their risks to another insurance company, known as a reinsurer. The projected decrease suggests that insurance companies worldwide are likely experiencing reduced demand or profitability in the life insurance sector, leading to a decline in the amount of reinsurance premium payments being made. Factors such as changes in consumer behavior, economic conditions, regulatory developments, and global health events could be contributing to this anticipated decline in global life reinsurance premiums for the year 2021.
References
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