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 Reinsurance Group of America (RGA), Everest Re, and TransRe (all based in the US), as well as Munich Re (Germany), Swiss Re (Switzerland), and SCOR (France).
The global reinsurance industry generates annual revenue of about $220 billion, according to ratings agency AM Best. Demand for insurance, and therefore reinsurance, is strong in emerging markets such as China, India, and Brazil, where growing middle-class populations are better able to afford coverage for life, health, and property.
The US reinsurance carriers industry includes about 450 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $60 billion.
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 top 20 companies account for about 85% 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 alternatives to traditional reinsurance backed by alternative capital sources.
Products, Operations & Technology
Reinsurance companies typically assume all or part of the risk associated with property/casualty, medical, life, and other types of insurance policies
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms