Reinsurance Market Report 2025

The reinsurance market size has grown strongly in recent years. It will grow from $631.56 billion in 2024 to $689.74 billion in 2025 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to catastrophic events, risk modeling advancements, pandemics and health crises, climate change concerns.

The reinsurance market size is expected to see rapid growth in the next few years. It will grow to $1.01 trillion in 2029 at a compound annual growth rate (CAGR) of 10.2%. The growth in the forecast period can be attributed to evolving regulatory landscape, sustainable and ESG practices, alternative capital sources, demographic changes, supply chain disruptions. Major trends in the forecast period include predictive analytics in underwriting, integration of Insurtech solutions, specialty reinsurance lines, long-term partnerships, parametric reinsurance products.

The forecast of 10.2% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through reduced risk transfer capacity, as catastrophe modeling systems and treaty administration platforms, largely developed in Bermuda and Luxembourg, become cost-prohibitive for some carriers to license. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing frequency of natural and man-made catastrophic events is anticipated to drive growth in the reinsurance market. These catastrophic events encompass significant disasters arising from either natural occurrences or human activities, resulting in considerable damage to assets or substantial physical destruction. Reinsurance serves to shield insurance companies from the significant financial risks linked to large-scale disasters by enabling them to transfer a portion of their risk to a third party in exchange for sharing the premiums they collect. For example, in May 2024, the Centre for Research on the Epidemiology of Disasters, a Belgium-based scientific and academic organization, reported that in 2023, 399 natural disasters led to 86,473 fatalities, affected 93.1 million individuals, and incurred economic losses of around US$202.7 billion. A substantial number of these deaths were caused by the catastrophic earthquake in Türkiye and Syria, which alone accounted for 56,683 fatalities and US$42.9 billion in damages. Consequently, the rising occurrence of both natural and man-made catastrophic events is fueling the growth of the reinsurance market.

The growth of the reinsurance market is also driven by the increasing number of road accidents. These accidents, involving motor vehicle collisions resulting in injuries or fatalities, lead to a heightened demand for insurance coverage related to automobile accidents. This surge in demand contributes to the overall growth of the insurance and reinsurance sectors. For example, data from the National Highway Traffic Safety Administration in August 2022 revealed a 7% increase in traffic accident-related fatalities during the first quarter of 2022, with 9,560 individuals losing their lives compared to 8,935 fatalities in the same period in 2021. Therefore, the rising number of road accidents is a significant factor propelling the growth of the reinsurance market.

Major companies in the reinsurance market are embracing new technologies, such as PolicyGPT, to maintain a competitive edge. Developed by Plum, a health insurance start-up, PolicyGPT is an AI-powered tool designed to enhance user experience and awareness of insurance policies. For example, in April 2023, Plum Benefits Private Limited, an India-based health insurance company, introduced the AI-driven tool PolicyGPT. This chatbot, built using the OpenAI GPT-3 architecture, provides users with information about the health insurance policy they purchased from Plum. It has access to user policy details and possesses a general understanding of health insurance, primarily aimed at educating users about their coverage.

Key players in the reinsurance market are prioritizing strategic partnerships to deliver reliable services to customers. A strategic partnership is an agreement between two or more companies or organizations that collaborates to achieve mutual goals. For instance, in April 2023, Swiss Re Reinsurance, a Switzerland-based reinsurance and insurance firm, and Benekiva, a US-based provider of software as a service (SaaS) technologies for insurers, announced a strategic alliance to create an integrated digital claims management platform. This innovative platform merges Swiss Re’s Claims Automated Rules Engine with Benekiva's claims administration system, aiming to simplify the claims process, enhance operational efficiency, and improve the overall customer experience for life and health insurers.

In April 2024, Aon plc, an Ireland-based provider of risk management services, insurance, and reinsurance brokerage, acquired Global Insurance Brokers (GIB) for an undisclosed amount. This acquisition aims to bolster Aon's broking and advisory capabilities in India, enhancing its ability to serve clients in the commercial risk, health, and reinsurance sectors. Global Insurance Brokers (GIB) is a UAE-based insurance brokerage firm that offers reinsurance services.

Major companies operating in the reinsurance market include Berkshire Hathaway Inc., Axa S.A., Lloyd’s of London, Liberty Mutual Group, Swiss Reinsurance Company Ltd., Taiping Reinsurance, Mapfre Re, SCOR SE, China Reinsurance (Group) Corp., Everest Group Ltd., PartnerRe, Odyssey Re Holdings Corp., General Insurance Corporation of India, Korean Reinsurance Company, AXIS Capital Holdings Limited, Transatlantic Reinsurance Company, Die R+V Versicherung AG, Munich Reinsurance Company, The Toa Reinsurance Company Limited, Qatar Reinsurance Company Limited, Peak Reinsurance Company Limited, Hannover Re, Reinsurance Group of America Inc., Talanx, Validus Reinsurance Ltd., Arch Reinsurance Ltd., Sirius International Insurance Group.

Western Europe was the largest region in the reinsurance market in 2024. The Asia-Pacific was the second largest region in the reinsurance market. The regions covered in the reinsurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the reinsurance market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a considerable impact on the financial sector, particularly in the areas of investment strategies and risk management. The increased tariffs have intensified market volatility, leading institutional investors to adopt more cautious approaches and driving greater demand for hedging solutions. Banks and asset managers are encountering higher costs in cross-border transactions as disrupted global supply chains and declining corporate earnings weigh on equity market performance. At the same time, insurance providers are facing elevated claims risks linked to supply chain interruptions and trade-related business losses. Furthermore, reduced consumer spending and weaker export demand are limiting credit growth and dampening investment appetite. In response to these challenges, the sector must focus on diversification, accelerate digital transformation, and strengthen scenario planning to manage the heightened economic uncertainty and safeguard profitability.

Reinsurance is a practice where multiple insurance companies collaborate to mitigate their risk exposure by purchasing insurance from other insurers, thereby minimizing potential losses collectively in the event of a catastrophic occurrence.

The primary categories of reinsurance include property and casualty reinsurance, along with life and health reinsurance. Life and health reinsurance encompass coverage for both health and life-related risks. These services are provided through both online and offline channels, catering to domestic and international organizations. The distribution channels involved in reinsurance are direct writing and brokerage.

The reinsurance research report is one of a series of new reports that provides reinsurance statistics, including reinsurance industry global market size, regional shares, competitors with reinsurance shares, detailed reinsurance segments, market trends and opportunities, and any further data you may need to thrive in the reinsurance industry. This reinsurance research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The reinsurance market consists of sales of reinsurance products by entities that assume all or part of the risk of 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 size of the market is based on the value of the premiums reinsured. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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