A life insurance firm acquires its own insurance contract as part of a life reinsurance strategy to protect itself from a big loss to a considerable number of its present life insurance clients' policies. If a sizable percentage of a firm poses a danger because of a comparable loss incident, they will frequently take this action. The second insurance or life reinsurance firm consents to take on this extra risk and accepts liability for paying the percentage of any claim that was first reinsured against. Furthermore, the term life reinsurance describes a sector of the insurance market where insurance firms, referred to as reinsurers, offer coverage and risk management services to other firms, referred to as ceding insurers, in exchange for a share of the latter firms' life insurance policies. In a life reinsurance contract, the ceding insurer transfers to the reinsurer a portion of the financial risk and liability related to its life insurance policies. In addition, with the goal of maximizing their financial stability and capital management, this approach enables ceding insurers to manage and reduce their exposure to financial risks associated with life insurance, such as mortality and longevity risk. In the insurance industry, life reinsurance is a crucial risk management technique since it gives ceding insurers a way to diversify their risks and improve their capacity to fulfill policyholder commitments.
The life reinsurance market is driven by the expansion of insuring capacity. By allocating a portion of the financial obligation related to their life insurance policies to reinsurers, life reinsurance helps primary insurers to increase their underwriting capacity. This enables them to underwrite more policies and diversifies their exposure to risk. With their knowledge and resources, the reinsurers assist ceding insurers in better managing and distributing their risk. Furthermore, growth in focus on insurers to stabilize losses by limiting risks drives the demand of the life reinsurance market. However, low interest rate hampers the growth of life reinsurance market. The cost of life reinsurance increases in relation to investment returns when interest rates are low. This problem with cost-effectiveness could discourage insurers from entering reinsurance contracts. Moreover, high cost of life reinsurance policies is a major factor that hampers the growth of life reinsurance market. On the contrary, rise in awareness about insurance products is an opportunity for life reinsurance market. A greater demand for various insurance products, including life reinsurance, may result from increased awareness. Insurers see growth in the number of their policyholders as more individuals become aware of the importance of financial protection.
The life reinsurance market is segmented on the basis of type, product offering, and region. On the basis of type, it is bifurcated into facultative reinsurance and treaty reinsurance. On the basis of product offering, it is classified into mortality solutions, morbidity solutions, longevity solutions, others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the life reinsurance market such as AXA XL, Berkshire Hathaway Life, Everest Group, Ltd., Hannover Re, Liberty Mutual Reinsurance, Munich Re, RGA Reinsurance Company, Sompo International Holdings Ltd., Swiss Re, and The Canada Life Assurance Company. These players have adopted various strategies to increase their market penetration and strengthen their position in the life reinsurance market.
The life reinsurance market is driven by the expansion of insuring capacity. By allocating a portion of the financial obligation related to their life insurance policies to reinsurers, life reinsurance helps primary insurers to increase their underwriting capacity. This enables them to underwrite more policies and diversifies their exposure to risk. With their knowledge and resources, the reinsurers assist ceding insurers in better managing and distributing their risk. Furthermore, growth in focus on insurers to stabilize losses by limiting risks drives the demand of the life reinsurance market. However, low interest rate hampers the growth of life reinsurance market. The cost of life reinsurance increases in relation to investment returns when interest rates are low. This problem with cost-effectiveness could discourage insurers from entering reinsurance contracts. Moreover, high cost of life reinsurance policies is a major factor that hampers the growth of life reinsurance market. On the contrary, rise in awareness about insurance products is an opportunity for life reinsurance market. A greater demand for various insurance products, including life reinsurance, may result from increased awareness. Insurers see growth in the number of their policyholders as more individuals become aware of the importance of financial protection.
The life reinsurance market is segmented on the basis of type, product offering, and region. On the basis of type, it is bifurcated into facultative reinsurance and treaty reinsurance. On the basis of product offering, it is classified into mortality solutions, morbidity solutions, longevity solutions, others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the life reinsurance market such as AXA XL, Berkshire Hathaway Life, Everest Group, Ltd., Hannover Re, Liberty Mutual Reinsurance, Munich Re, RGA Reinsurance Company, Sompo International Holdings Ltd., Swiss Re, and The Canada Life Assurance Company. These players have adopted various strategies to increase their market penetration and strengthen their position in the life reinsurance market.
Key Benefits For Stakeholders
- The study provides in-depth analysis of the global life reinsurance market along with the current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the global life reinsurance market size are provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the global life reinsurance market from 2022 to 2032 is provided to determine the market potential.
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- SWOT Analysis
Key Market Segments
By Type
- Facultative Reinsurance
- Treaty Reinsurance
By Product Offering
- Mortality Solutions
- Morbidity Solutions
- Longevity Solutions
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- AXA XL
- Everest Group, Ltd.
- Berkshire Hathaway Life
- Sompo International Holdings Ltd.
- RGA Reinsurance Company
- Hannover Re
- Munich Re
- Liberty Mutual Reinsurance
- Swiss Re
- The Canada Life Assurance Company
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: LIFE REINSURANCE MARKET, BY TYPE
CHAPTER 5: LIFE REINSURANCE MARKET, BY PRODUCT OFFERING
CHAPTER 6: LIFE REINSURANCE MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report titled, 'Life Reinsurance Market,' the life reinsurance market was valued at $222.14 billion in 2021, and is estimated to reach $647.8 billion by 2031, growing at a CAGR of 11.6% from 2022 to 2031.The Life Reinsurance Market is likely to experience a significant growth rate of 11.6% from 2022-2031 owing to increasing market demand from insurance sector.
A life insurance firm will acquire its own insurance contract as part of a life reinsurance strategy to protect itself from a big loss to a considerable number of its present life insurance clients' policies. If a sizable percentage of a firm poses a danger because of a comparable loss incident, they will frequently take this action. The second insurance or life reinsurance firm consents to take on this extra risk and accepts liability for paying the percentage of any claim that was first reinsured against.
Key factors driving the growth of the life reinsurance market include the fact that life reinsurance companies all around the world are selling packages of products and services related to insurance policies to increase their earnings. This shift is the consequence of reinsurers’ providing a wide range of options, competitive rates, and expanded coverage in an effort to increase market share and lower costs. In addition, it helps insurance companies reduce risk by guarding against insolvency. These factors notably contribute to the growth of the global life reinsurance market. Since the reinsurers are eager to offer primary insurers value-added services, they have implemented a number of measures to smooth out their revenues. The emphasis has drastically changed from only dealing with risks associated with property disasters to including a wider spectrum of hazards. Furthermore, a significant factor anticipated to fuel the expansion of the life reinsurance market is the rise in awareness of health protection. In addition, the expansion of the life reinsurance market is predicted to be fueled by an increase in demand for various insurance plans over the forecast period. The general population is now more aware of the importance of life insurance as a result of the COVID-19 outbreak. The high cost of COVID-19 therapy in private hospitals is one of the main reasons for the increase in demand for life and health insurance plans. Additionally, a growing trend in the life reinsurance industry is the rise in demand for conduit life reinsurance and artificial intelligence (AI) in life reinsurance.
The market also offers growth opportunities to the key players in the market. Life reinsurance companies are incorporating blockchain technology into their operations to cut costs, boost efficiency, promote transparency, and improve the security of customer data and other financial activities. In addition, improvements in digital services and digital product offerings by life reinsurance companies are expected to provide lucrative opportunities for the market growth in the coming years. Furthermore, Future market growth is anticipated to be fueled by the digitization of life reinsurance firms. Furthermore, it is anticipated that major industries would increasingly choose conduit life reinsurance, opening up significant growth prospects for the industry in the years to come.
The life reinsurance market is segmented into type, product, distribution channel, and region. By type, the market is differentiated into facultative reinsurance and treaty reinsurance. Depending on product, it is fragmented into disease insurance and medical insurance. The distribution channel segment is segregated into direct writing and brokers. Region wise, it is analyzed across North America (the U.S., and Canada), Europe (the UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The key players profiled in the study include AXA XL, Berkshire Hathaway Life Insurance Company, Everest Re Group, Ltd., The Canada Life Assurance Company, Swiss Re, Munich Re, Hannover Re, MAPFRE, RGA Reinsurance Company, and PartnerRe. The players in the market have been actively engaged in the adoption various Strategies such as acquisition, product launch and expansion to remain competitive and gain advantage over the competitors in the market. For instance, in December 2022, Reinsurance Group of America, Incorporated, a leading global life and health reinsurer, together with their global accelerator RGAX LLC, announced the launch of Plan V Care, a digital cancer-only product designed for women. In partnership with Covea Life, a U.K. life and critical illness insurer specializing in innovation in the life sector, and Direct Life and Pensions, RGA has developed a direct-to-consumer proposition specifically tailored to meet the needs of female millennials.
Key Market Insights
By distribution channel, the direct writing segment led the highest life reinsurance market share in terms of revenue in 2021.On the basis of product, the medical insurance segment is expected to exhibit the fastest growth rate during the forecast period.
Region-wise, North America generated the highest revenue in life reinsurance market size in 2021.
Companies Mentioned
- AXA XL
- Everest Group, Ltd.
- Berkshire Hathaway Life
- Sompo International Holdings Ltd.
- RGA Reinsurance Company
- Hannover Re
- Munich Re
- Liberty Mutual Reinsurance
- Swiss Re
- The Canada Life Assurance Company
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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