1/1 Reinsurance Renewals: Capacity Expands, but Underwriting Discipline Holds
Reinsurance renewals for 2025 reflect a shift in market conditions. Property reinsurance rates have softened, though profitability remains strong
The global reinsurance market was valued at $500 billion, and is projected to reach $1344 billion by 2031, growing at a CAGR of 10.8%.
Reinsurers insure the insurers and have been pushing up premiums in recent years as they have faced higher losses. The key players operating in the reinsurance market analysis include AXA XL, Barents Re Re, Berkshire Hathaway, BMS Group, China Re, Everest Re, Hannover Re, Lloyd’s, MAPFRE, Markel Corp, Munich RE, RGA Re, Swiss Re, The Canada Life Assurance Company, Tokio Marine HCC, SCOR, Next Insurance.
In this section, we have collected the most current articles and reviews on the topic of the Global Reinsurance Market.
Reinsurance renewals for 2025 reflect a shift in market conditions. Property reinsurance rates have softened, though profitability remains strong
The insurance and reinsurance sectors face an expanding risk landscape, driven by critical challenges such as climate change and cyber threats
Reinsurers are likely to push for double-digit increases in U.S. casualty premium rates during the January 2025 renewals. This move aims to address higher loss costs
More than 50% of the 81 respondents think global reinsurers will raise prices in January reinsurance 2025 renewals, continuing recent increases driven by high claims inflation
Since the war began, global reinsurers have bundled risks from Ukraine, Russia, and Belarus, excluding them from reinsurance contracts. This has reduced available capital and hindered economic stability
ILS market remains a significant capital source for reinsurers in 2024. Alternative capital estemated at $110 bn, with the catastrophe bond market growing to $45 bn
In 2024, global reinsurer capital, including both alternative and traditional sources, has reached peak levels. Reinsurer capital stood at $695 bn as of mid-2024, marking a $25 bn increase
While the reinsurance industry faces challenges, such as geopolitical and economic uncertainty, its biggest threat is losing relevance. 2024 has been another year of volatility
Global reinsurance market delivered strong results in 2024 with further improvement in underwriting profitability, exceptional ROEs and a continued building of capital
Mid-year reinsurance renewals have further consolidated the positive trends at 1/1 and 4/1, setting the stage for a more competitive reinsurance market in 2025
Global reinsurance groups reported a significant improvement in underwriting profitability and ROEs in 2023
Fitch revised global reinsurance sector outlook to ‘improving’ from ‘neutral’ to reflect the sector’s strengthening performance into 2024
AM Best has released the Market Segment Outlook: Global Reinsurance report on the outlook for global non-life reinsurance, maintaining a stable view
The property catastrophe bond market supported new and repeat insurance, reinsurance and government sponsors
Pricing cycles in the commercial insurance and reinsurance sectors are now converging, marked by price increase moderation overall for the former, albeit with strengthening
The April 1 reinsurance renewal season has seen a continuation of the discipline shown by reinsurers at January 1 but with a greater determination that pricing
Seismic shifts in the macroeconomic environment – combined with geopolitical uncertainty and heavy natural catastrophe losses – led to a severe tightening of capacity
For the global reinsurance industry, activities in 2023 and renewals for 2024 were set against a backdrop of significant economic and geopolitical uncertainties
Global reinsurance market has faced a very late, complex and in many cases frustrating renewal 1/1. Two areas of most constraint were peak-zone US property catastrophe
The global reinsurance industry reached a tipping point during the 2024 renewals as their bargaining power vis-à-vis their cedents moved substantially in reinsurers’ favour
The global reinsurance market has endured a complex and in many cases frustrating renewal process which has gone down to the wire, according to the 1st View January