Reinsurance Carriers Industry Profile

Companies in this industry provide insurance to other insurance companies to assume the risk on existing policies as a hedge against catastrophic loss. Major companies include Everest Re, Reinsurance Group of America, and TransRe (all based in the US), as well as Munich Re (Germany), SCOR (France), and Swiss Re (Switzerland).

The global reinsurance industry is forecast to reach about $1.3 trillion in 2033, at a compound annual growth rate (CAGR) of 8.36%, according to Spherical Insights. Demand for insurance, and therefore reinsurance, has increased in the last few years, driving global expansion of the insurance business.

The US reinsurance carriers industry includes about 400 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $70 billion.

COMPETITIVE LANDSCAPE

Demand is driven by the volume of insurance policies written and the size of insurance companies' risk portfolios. The profitability of individual companies depends on the ability to balance premium and investment income against claim payouts. Large companies have advantages in serving customers in diverse geographic areas and product categories. Smaller companies can compete effectively by providing coverage for specialized insurance markets. The US industry is highly concentrated: the 50 largest firms account for nearly 100% of revenue.

Consolidation has intensified competitive pressure in the industry, as larger players are better able to offer broader and more diversified coverage. Reinsurance firms also competition from financial service providers that provide ...