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Aug 14, 2020 · Terms and conditions for reinsurance coverage are rapidly becoming more strict, particularly after the wave of lawsuits against insurers, which refused to pay out for Covid-related business ...
- John Dizard
- History and Recent Industry Performance
- Importance of Scale and Diversification
- P&C Reinsurance (Non-Life): Ability to Support New Risks?
- Life Reinsurance: Ability to Meet Unmet Needs?
- Health Reinsurance: Reinsurance, Or Primary Play?
Reinsurance has played a critical role in the industry for more than 150 years. It is believed to have started with Cologne Re, which wrote the first reinsurance treaties in 1852, one decade after the Great Fire of Hamburg. Cologne Re has since merged and became part of Gen Re (a subsidiary of Berkshire Hathaway) in the 1990s. Swiss Re and Munich R...
In recent years, the reinsurance industry has continued to consolidate and diversify. The leading global, diversified companies – such as Munich Re, Swiss Re, SCOR, Hannover Re, and Partner Re – have maintained their market share, and have also sustained their profitability better than others in the industry; see Exhibit 4. Among mid-sized companie...
Non-life reinsurance remains strongly capitalized. Even in the case of a 1-in-250-year loss event, industry capitalization is unlikely to deteriorate below the “A” level versus the current “AAA” capital adequacy. This, in combination with the ongoing inflow of capital in the continued low-interest rate environment, makes the current soft market lik...
Life reinsurance has higher barriers to entry and is a significantly more consolidated market than P&C reinsurance. The top five life reinsurance companies account for more than 75% of the revenues globally, compared to 40% in non-life reinsurance. “Traditional” life reinsurance faces similar pressures to those described in P&C reinsurance, includi...
More so than P&C and life reinsurance, health reinsurance is a multi-niche, multi-local market, with significant local differences, and also supporting markets where reinsurance is less frequent. The reasons for this include large and strong balance sheets for primary companies (notably in the US); the non-cumulating nature of the risks (pandemics ...
A hard reinsurance market can therefore be summarised as a general market condition where the availability of reinsurance coverage is limited, and the cost of that coverage is high. Several factors have resulted in the new normal standard including an increase in natural disasters, exposure to Russia’s war in Ukraine, increasing inflation ...
Jun 23, 2021 · Reinsurance is a way a company lowers its risk or exposure to an untoward event. The idea is that no insurance company has too much exposure to a particular large event/disaster. If one company ...
Aug 31, 2023 · Insurance companies commonly want the same kind of financial protection offered to their customers, and they can find such protections in the reinsurance market. Reinsurance companies provide ...
Reinsurance companies are used to the risks associated with insuring other insurance companies against catastrophic events. Now, however, they’re dealing with risks closer to home—namely, threats posed by evolving business models, rapidly changing regulations, market consolidation, and the need to adopt more automated processes and digital capabilities.
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Sep 27, 2024 · The life insurance industry is increasingly relying on reinsurance to support growth and manage market changes. The 2022 SOA Life Reinsurance Survey revealed respondents’ US portfolio new business was $119 billion in 2022, with a total of more than $2.7 trillion through the last 10 years of the survey. 2 Traditional operating models have been challenged, which creates the opportunity for ...
Excess of Loss Reinsurance. Facultative Reinsurance
