Health and Medical Reinsurance Market Report 2025

The health and medical reinsurance market size has grown strongly in recent years. It will grow from $70.53 billion in 2024 to $76.32 billion in 2025 at a compound annual growth rate (CAGR) of 8.2%. The growth in the historic period was driven by the rising prevalence of chronic diseases, increasing healthcare expenditures, growing demand for risk-sharing solutions, stricter regulatory mandates, and a higher incidence of catastrophic health events.

The health and medical reinsurance market size is expected to see strong growth in the next few years. It will grow to $103.25 billion in 2029 at a compound annual growth rate (CAGR) of 7.8%. In the forecast period, growth is expected to be supported by the expanding adoption of digital health platforms, increasing demand for customized reinsurance models, greater participation by self-insured employers, a stronger focus on financial risk mitigation, and rising awareness of reinsurance benefits among smaller insurers. Key trends anticipated include innovations in underwriting models, the development of AI-powered risk assessment tools, increased investment in data analytics and automation, and advancements in health claim management systems.

The rising incidence of chronic diseases is expected to drive the growth of the health and medical reinsurance market. Chronic diseases are long-term health conditions that develop gradually and often require continuous medical care. Their growing prevalence is partly linked to sedentary lifestyles, where prolonged sitting and low physical activity increase the risk of conditions such as heart disease and diabetes. Health and medical reinsurance play a key role in managing these conditions by sharing the financial burden of long-term treatments, enabling insurers to provide ongoing care. It helps stabilize healthcare costs by covering high-risk claims, ensuring patients with chronic conditions have consistent access to medical services. For example, in June 2024, the UK’s National Health Service reported that 3,615,330 individuals registered with a general practitioner were diagnosed with non-diabetic hyperglycemia or pre-diabetes in 2023, an 18% rise from 3,065,825 cases in 2022. This increasing disease burden is contributing to the market’s growth.

Companies in the health and medical reinsurance market are pursuing strategic expansions to strengthen regional presence and boost reinsurance capacity. Strategic expansion involves deliberate efforts by reinsurers or primary insurers to broaden or diversify operations in ways that enhance market position, financial stability, and risk management capabilities in healthcare. For instance, in January 2025, Aon plc, a UK-based insurance company, launched a life and health reinsurance practice in India. This initiative supports the sector’s growth, attracts global reinsurance capital, and aligns with government reforms. The practice provides tailored reinsurance solutions for life, health, and critical illness risks, addressing the increasing complexity of the Indian insurance market and helping clients make informed decisions.

In January 2024, Arthur J. Gallagher & Co., a U.S.-based insurance company, acquired 11492446 Canada Inc. (MGB Re) for an undisclosed amount. The acquisition expands Gallagher’s capabilities in health and medical reinsurance and strengthens its presence in the Canadian market. MGB Re, based in Canada, is a reinsurance brokerage specializing in health and medical reinsurance solutions.

Major players in the health and medical reinsurance market are Berkshire Hathaway Reinsurance Group, Allianz Reinsurance, Munich Reinsurance Company, MS&AD Insurance Group Holdings Inc., Swiss Reinsurance Company Ltd, Hannover Rück SE, Mapfre Re Compañía de Reaseguros S.A., SCOR SE, RGA Reinsurance Company, China Reinsurance Group Corporation, QBE Reinsurance, Everest Re Group Ltd., Validus Reinsurance Ltd., AXA XL Reinsurance, PartnerRe Ltd., AXIS Capital Holdings Limited, Korean Reinsurance Company, General Reinsurance Corporation, Transatlantic Reinsurance Company, and Odyssey Re Holdings Corp.

North America was the largest region in the health and medical reinsurance market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in health and medical reinsurance report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the health and medical reinsurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Health and medical reinsurance are a risk-sharing arrangement in which health insurance providers transfer a portion of their potential claim liabilities to another insurance company. This arrangement protects the primary insurer from bearing unusually high medical costs, such as those resulting from severe illnesses or costly treatments. It enables insurers to manage financial exposure and maintain coverage offerings even when faced with significant or unexpected healthcare claims.

The main product categories in health and medical reinsurance include life reinsurance products, health reinsurance products, disability reinsurance products, and long-term care reinsurance products. Life reinsurance products help insurers mitigate the financial risk associated with life insurance policies by transferring part of the death benefit liability to reinsurers. Coverage options include comprehensive reinsurance, excess of loss reinsurance, quota share reinsurance, and stop loss reinsurance, addressing risk types such as mortality risk, morbidity risk, operational risk, and regulatory risk. These reinsurance solutions cater to a variety of healthcare sectors, including private and public healthcare providers, nonprofit healthcare organizations, and managed care organizations, with end users comprising insurance companies, self-insured employers, government bodies, and others.

The health and medical reinsurance market research report is one of a series of new reports that provides health and medical reinsurance market statistics, including the health and medical reinsurance industry global market size, regional shares, competitors with the health and medical reinsurance market share, detailed health and medical reinsurance market segments, market trends, and opportunities, and any further data you may need to thrive in the health and medical reinsurance industry. This health and medical reinsurance market 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 health and medical reinsurance market includes revenues earned by entities by providing services such as risk pooling and risk sharing, capital relief and solvency support, claims management support, product development consulting, and catastrophic event coverage. 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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