Firm footing: The industry entered a hardening cycle, and investment income has grown

Reinsurance is the business of insuring insurance policies so that direct insurers can manage their risk and limit their liabilities. Reinsurers often also use reinsurance to manage their own policy risks or to generate profit by insuring reinsured policies. This process is known as retrocession. Reinsurance is a global business because risks in certain geographies can be minimised by spreading coverage across a variety of markets. Operators in this industry generate their revenue both from policy premiums and investment income.Over the five years through 2017-18, industry revenue is anticipated to increase at compound annual rate of 2%...read more.

Industry Statistics & Market Size
Revenue
£20bn
Annual Growth 14-19
3.5%
Forecast Growth 19-24
Profit
Employment
4,352
Businesses
21

Industry Threats & Opportunities

  • Demand has been supported by increased claims following recent natural disasters
  • The industry has faced rising competitive threats from alternative risk transfer strategies
  • The industry is expected to remain in the hardening stage of the underwriting cycle
  • Industry Report - Industry Key Buyers Chapter

    It is important to note major player revenue and market share concentration will differ from industry revenue. This is because major player market shares are calculated according to premium income whereas industry revenue includes both premium income and investment income. In light of this, the Reinsurance industry exhibits a medium level of market share concentration, with the top four players in the industry estimated to account for less than 70% of the industry in terms of premium revenue. However, the top two firms, Lloyd’s of London and Munich Re, account for 49% of premium income according to IBISWorld estimates...purchase to read more.

    Additional Insights for the Reinsurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Reinsurance Industry are

  • Financial position of the company (as against financial structure)
  • Ability to effectively manage risk
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Damage caused by natural disasters and Demand from general insurance in the Reinsurance industry impact industry performance..

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    What's in this report

    What is the Reinsurance Industry?

    Companies in this industry specialise in assuming all or part of the risk associated with insurance policies underwritten by insurance companies. In other words, the primary business of participants in the industry is insuring insurance companies by taking on some of the risks they have assumed through their underwriting activities.

    Industry Products
  • Life reinsurance
  • Accident, health and medical reinsurance
  • Property and casualty reinsurance
  • Other reinsurance
  • Liability reinsurance
  • Industry Activities
  • Reinsuring automobiles
  • Reinsuring annuities, life insurance and disability income
  • Reinsuring health and medical policies
  • Reinsuring sureties and titles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Damage caused by natural disasters
  • Demand from general insurance
  • Demand from life insurance
  • year bond rate
  • FTSE 100

  • Current Performance
  • Investment income
  • The underwriting cycle
  • Excess reserves and depressed prices
  • Hardening cycle
  • Profit and market structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Investment income
  • Premium income and pricing
  • New products
  • Technology and efficiency
  • Profit and market structure
  • Future concerns
  • Table: Reinsurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Reinsurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance
  • General Insurance

  • Key Selling Industries
  • Insurance Agents & Brokers
  • Reinsurance

  • Products & Services
  • Property and casualty reinsurance
  • Life reinsurance
  • Liability reinsurance
  • Accident, health and medical reinsurance
  • Other reinsurance
  • Chart: Reinsurance Industry Products and Services Segmentation

  • Demand Determinants
  • Risk exposure
  • Underwriting capacity

  • Major Markets
  • General insurers
  • Life, health and medical insurers
  • Specialist insurers
  • Chart: Major Market Segmentation for the Reinsurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitLoss and loss adjustment expensesInvestment, commission and brokerage expensesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Reinsurance

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Reinsurance Industry

  • Industry Globalization
    Lloyd's of London, Munich Re, Swiss Reinsurance Company Ltd, Hannover Ruck SE,
  • Table: Lloyd's of London - financial performance
  • Table: Munich Re - financial performance
  • Table: Swiss Reinsurance Company Ltd - financial performance
  • Table: Hannover Ruck SE - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Reinsurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Reinsurance Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Capacity
  • The supply of insurance and the maximum amount of insurance a company or market can underwrite based on its financial strength or the policyholder's surplus.
  • Cede
  • The action of an insurer passing risk to a reinsurer. The cedent purchases a contract indemnifying them for specific losses realised in assuming liability through the issuance of insurance policies.
  • Retrocession
  • A reinsurance transaction whereby a reinsurer cedes all or part of the reinsurance risk it has assumed to another reinsurer.
  • Underwriting
  • A process of measuring risk and determining the premium that needs to be paid to insure that risk.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Reinsurance market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Reinsurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Reinsurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Reinsurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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