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Based on product, the reinsurance market is segmented into life & health and non-life. The non-life segment held a market share of over 57% in 2022 and is anticipated to experience robust growth during the forecast period. The increasing frequency and severity of natural catastrophes globally are propelling the non-life reinsurance segment growth. Hurricanes, floods, wildfires, and earthquakes are some of the natural disasters that have become more frequent and severe, resulting in substantial losses for primary insurers. Non-life reinsurers have stepped in to provide financial protection and share the burden of these risks, driving the demand for reinsurance coverage.
Based on type, the reinsurance market is divided into facultative reinsurance and treaty reinsurance. The treaty reinsurance segment was valued at over USD 180 billion in 2022. The demand for treaty reinsurance is majorly driven by factors such as the increasing size and complexity of insurance portfolios. Primary insurers often support large volumes of risks across multiple lines of business, resulting in a need for efficient risk management strategies. Treaty reinsurance allows insurers to transfer a significant portion of their risks to reinsurers, enabling them to optimize their capital allocation and reduce potential volatility in their financial results. These factors will boost segment growth during the forecast period.
Asia Pacific reinsurance market held a dominant share of over 23% in 2022. Economic expansion, increasing insurance penetration, and rising awareness of risk management are some of the factors propelling growth in the Asia Pacific reinsurance industry. China, Japan, and India are key contributors to market growth in the region. The region faces unique risks including natural catastrophes and there is a growing demand for coverage related to property, casualty, and emerging risks such as cyber & liability. Insurtech advancements, regulatory reforms, and the development of local reinsurance capacity will further drive market growth in Asia Pacific.