TechNavio recognizes the following companies as the key players in Global Reinsurance Market: Munchener Ruckversicherungs-Gesellschaft AG, Swiss Reinsurance Company Ltd, Hannover Rück SE, and Berkshire Hathaway Inc.
Commenting on the report, an analyst from TechNavio’s team said: “Natural catastrophe losses have increased in the past three decades, primarily due to rising economic values. Increasing urbanization in the coastal regions and the increasing frequency of natural calamities has played a significant role in the uptake of the Reinsurance market. Thailand floods (2011), and the earthquake in Chile (2012) are some of the catastrophe losses that took place in the emerging countries and resulted in adverse economic conditions. Emerging countries stand to benefit the most from the reinsurance companies, in the event of catastrophe losses. Insurance as well as reinsurance are used as indirect risk mitigation strategies because premiums are a small fraction of the coverage benefits, which is a cost paid to take precaution against a probable risk. In the event of a catastrophe, losses are limited because the insurance benefits directly support reconstruction. As a result, the density of insurance and reinsurance companies is bound to increase, with the increasing demand of reinsurance. This will also reduce the burden of higher government debt per capita, which is incurred in the event of natural calamities. ”
According to the report, one of the major drivers in this market is the robust economic growth. China, the US, Japan, and the UK are some of the leading countries that have exhibited good economic growth, coupled with low inflation rates. This makes them a potential segment for reinsurance. These countries are also prone to natural catastrophe.
Further, the report states that one of the main challenges in this market is the slower growth in premium income. The global interest rate is currently low, which has lowered the investment yields. Consequently, insurance companies are left with adequate capital to mitigate their risk mitigation strategies, which reduces the demand for reinsurance.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors. For further information on this report, please visit https://www.technavio.com/report/global-reinsurance-market-2014-2018
TechNavio, the market research platform of Infiniti Research Ltd., publishes periodic market research reports on niche and emerging technologies. For more information on our market research, please visit https://www.technavio.com/it-hardware-software-services
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TechNavio Announces the Publication of its Research Report – Global Reinsurance Market 2014-2018
