The global life & health reinsurance market is expected to grow to $600 billion in 2026 at a compound annual growth rate (CAGR) of 10.4%. It will grow to $404.11 billion in 2022 at a CAGR of 11.4% from $362.92 billion in 2021.
Some of the major players in this industry are Swiss Reinsurance Company; Munich Re Group; Reinsurance Group of America (RGA); Hannover Re; China Reinsurance Corporation; Berkshire Hathaway Re; Korean Reinsurance Company; Great-West Lifeco; and General Insurance Corporation of India (GIC Re).
The life & health reinsurance market is made up of sales of reinsurance by organizations, partnerships, and sole traders that are engaged in assuming all or part of the risk with existing life and health insurance policies which have been originally underwritten by other insurance providers. It should be noted that only goods and services traded between organizations or sold to end consumers are included.
Rising demand for life and health insurance policies will drive the market for life and health reinsurance market. Experts attribute the demand to the COVID-19 pandemic. It has raised the importance and demand for life insurance in the minds of people. Moreover, the uncertainty of getting contracted the coronavirus and its high treatment cost in private hospitals is the main reason behind the surge in the demand for life and health insurance policies.
The Life Insurance Corporation (LIC) – India’s largest life insurer – in the fiscal year 2019-2020 sold around 21.9 million policies. This is the highest in the last six years. As such, increased demand for life and health insurance policies is expected to hit the market for life and health reinsurance positively. Experts say low-interest rates in life and health insurance policies make the insurance company’s products less attractive, resulting in lower sales and lower income in the form of premiums that the insurance company has to invest in. A low-interest rate is regarded as a restraint in the life and health insurance market during the period.
German-based reinsurance company Munich Re highlighted that interest rates exacerbated by the COVID-19 pandemic are impacting the profitability of reinsurers. This will make insurance covers to become more expensive. And it will hurdle the growth of the market and impact the life and health reinsurance market as well.
