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
Reinsurance market forcast is expected to grow to $895.4 bn in 2027 at a CAGR of 9.1%. Reinsurance providers are integrating their processes with blockchain technology to reduce costs, increase efficiency, transparency, and security associated with client data and other financial transactions.
The global reinsurance market is projected to reach $1344.3 bn by 2031, growing at a CAGR of 10.8% from 2023 to 2031.
The Global Reinsurance market is anticipated to rise at a considerable rate during the forecast period, between 2023 and 2029. In 2023, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.
In this section, we have collected the most current articles and reviews on the topic of the Reinsurance Market Forcast.
Reinsurance renewals for 2025 reflect a shift in market conditions. Property reinsurance rates have softened, though profitability remains strong
Global reinsurers’ profitability will remain strong in 2025 despite lower risk-adjusted prices for most business lines when reinsurance contracts were renewed on 1 January
The insurance and reinsurance sectors face an expanding risk landscape, driven by critical challenges such as climate change and cyber threats
Changes to reinsurance-related capital requirements proposed by the Australian Prudential Regulation Authority strengthen Australian general insurers’ credit profiles
In 2024, reinsurance premium rates increased, interest rates remained high, and capital markets performed well. The composite achieved its highest ROE in five years
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
Reinsurers will push for double-digit increases in U.S. casualty premium rates when policies come up for renewal in January 2025 to keep up with higher loss costs
The positive reinsurance market outlook comes from de-risking as much as pricing with changes in terms and conditions, rising attachment points and tightening of wording
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
Higher property values, urbanization, and increased repair costs are likely to drive demand for property re/insurance, particularly in regions facing heightened natural catastrophe
Global reinsurance market delivered strong results in 2024 with further improvement in underwriting profitability, exceptional ROEs and a continued building of capital
The mid-year reinsurance renewals occurred against a continued increase in reinsurer appetite as overall reinsurance capacity grew
Aon estimates that global reinsurer capital rose by $25 bn to a new high of $695 bn over the three months to March 31, 2024
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
Florida’s reinsurance market, after three years of significant rate hikes, saw a pause in 2024. Reinsurers viewed the outcome positively
Reinsurance renewals conditions since 1/1 have continued to move in favor of reinsurance buyers. At the start of last year, property catastrophe capacity was constrained
Global Reinsurance market conditions since 1/1 have continued to move in favor of reinsurance buyers. Reinsurance renewals at April 1 consolidated the progress made at 1/1
Global reinsurance groups reported a significant improvement in underwriting profitability and ROEs in 2023
The underwriting margins for reinsurers are anticipated to reach their peak in 2024, driven by significant price increases and stricter terms and conditions
Reinsurance rate increases for property catastrophe business are likely to slow to below 10% on average when contracts are renewed in January 2024
Global reinsurance rate increases for property catastrophe business are likely to slow to below 10% on average when contracts
Ahead of the January 2024 reinsurance renewals, reinsurers’ overall appetite for US regional property catastrophe coverage remains healthy