Market research report by Transparency Market (TMR) shows that the global reinsurance market on an upward curve between 2018 and 2026, charting a CAGR (Compound Annual Growth Rate) of a steady 4.7%, generating a market worth of 364.59 billion. Thus, market players should brace themselves for new and lucrative opportunities of growth over this period.
It is pertinent to note here that reinsurance is a critical instrument that protects the reinsurer via a ceding company from damages of calamities as per terms of agreement. This allows the latter to have a position of surplus and move from strength to strength. Besides, it allows for a reduced risk in terms of net amount. Because, this way it can actually increase the value of an individual risk, thereby allowing for a greater capacity for underwriting, the value of reinsurance is significant.
It is also pertinent to note here that it includes protection from critical illness, damage to property and casualty losses, negative impact on life and health and disability. And, some of the industries that are majorly dependent on this are transportation, oil and gas and agriculture.
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It is also pertinent to note at this point that the region that will account for a major share of the global reinsurance market revenue is the North American region owing to a robust regulatory framework and a clamor to provide protection against property catastrophe. This is particularly true of two of the most important part of this region, which are Canada and the United States of America.
However, there is another region that is all set to drive significant strength to the trajectory of the global reinsurance market over the forecast period. It is that of the Asia Pacific (APAC) with its robust countries – China, India, and Japan – charting a notable CAGR. One of the factors that is notable in the overall scheme of things contributing to the growth of this market in the region is that of property catastrophe protection.
It makes sense owing to a rise in natural calamities witnessed by the region such as earthquakes, series of floods, typhoons and so on. One of the recent development include Kerala Floods of 2018 that led to a million people losing their homes.