Reinsurance Market Expected To Reach $1.34 Trillion by 2031 Amid Rising Demand

The reinsurance market is projected to experience robust growth, reaching $1.34 trillion by 2031 at a compound annual growth rate (CAGR) of 10.8 percent, according to a recent report by Allied Market Research. With rising global demand for insurance options, increased awareness following the COVID-19 pandemic, and advancements in artificial intelligence applications, the reinsurance industry—valued at $498.7 billion in 2021—is set to expand rapidly. 

The report highlights that treaty reinsurance—where insurers cover entire classes of risk without individual underwriting—is projected to be the fastest-growing segment in the market, with an anticipated CAGR of 11.9 percent. As of 2021, treaty reinsurance made up over two-thirds of the market, contrasting with facultative reinsurance, which requires case-by-case underwriting. 

Property and casualty reinsurance held a dominant position in 2021, covering almost two-thirds of the market. However, life and health reinsurance is anticipated to grow the fastest, at a projected CAGR of 12.8 percent, due to an increased demand for health insurance. The impact of the COVID-19 pandemic has underscored the value of life insurance, raising consumer awareness and demand. 

Regionally, North America led the reinsurance market with over two-fifths of the total share in 2021, spurred by rising demand for life, health, property, and casualty insurance. The Asia-Pacific region, however, is set to grow at the fastest rate, with a forecasted CAGR of 14.2 percent through 2031. The report attributes this to increased underwriting innovations and expanding markets in the region. 

Key players in the reinsurance market include AXA XL, Barents Re Reinsurance Company, Berkshire Hathaway Inc., BMS Group, China Reinsurance (Group) Corporation, Everest Re Group, Hannover Re, Lloyd’s, MAPFRE, Markel Corporation, Munich RE, RGA Company, Swiss Re, The Canada Life Assurance Company, Tokio Marine HCC, and SCOR, according to the report.