Germany Reinsurance Market Analysis
The Germany Reinsurance Market is expected to register a CAGR of 4.2% during the forecast period.
Reinsurance is a practice where an agreement is made between a reinsurance company and an insurance company to cover some risk of the claims made by the customers to the insurance company. This is done to reduce the risk to the insurance company. Situations such as an insurance company facing a high number of claims due to unfavorable market conditions give rise to a reinsurance cover. During the COVID-19 insurance company has seen a rise in the growth of claims made in the life & health insurance sector. The economic and social disruption due to the pandemic increased, which increased insurance claims, and companies have taken a digital approach to resolve the issues in their customer services. This is said to be a factor that will give rise to the need for reinsurance in the sector.
Companies in the market are constantly investing in R&D and artificial intelligence deployment to capitalize on promising business opportunities; for instance, Munich Re is increasing the acceptance of artificial intelligence and paving the way for responsible AI application use. Other factors, such as increasing property loss due to natural calamities, have increased the insurance claim rate in Europe. For instance, recent severe floodings caused devastating losses in western Germany; this loss was over USD 40 billion.
Germany Reinsurance Market Trends
Increasing Insurance Claim Across the Region is Driving The Market
Germany has seen a steady increase in insurance claims across various industries, such as health insurance, motor insurance, property and casualty insurance, and others. This steady increase in insurance claims will have a direct impact on the reinsurance market. By purchasing reinsurance, insurance companies reduce the risk of insolvency. Furthermore, reinsurance increases the capacity of the insurance company to bear the financial weight of increasing clients.
Natural disaster has is driving the growth of reinsurance market
In the previous year, across the globe, the losses due to natural disasters accounted for more than USD 280 Billion. In Germany, the loss due to natural disasters was estimated to be more than USD 4.5 billion in the previous year. Out of these, less than 25% were insured. Due to such disasters, people are inclined more towards buying insurance to safeguard their property and health. Events like this may result in a spike in insurance claims. Market discipline has increased as a result of such events and has a direct impact on the reinsurance market.
Germany Reinsurance Industry Overview
The Germany Reinsurance Market is moderately fragmented in nature. Various key players are adopting creative and innovative strategies for expanding their market share and increasing their grip on the regional presence in the market. This adoption of new strategies has also resulted in the attraction of more customers and offering better value to them. Some of the key players in the market are Munich RE, AXA SA, RGA Insurance Company, General Re Corporation, and Lloyd's.
Germany Reinsurance Market Leaders
Munich RE
AXA SA
RGA Insurance Company
General Re Corporation
Lloyd's
- *Disclaimer: Major Players sorted in no particular order
Germany Reinsurance Market News
- July 2022: AXA Germany agreed to transfer a portfolio of around 900,000 conventional life and annuity insurance contracts worth Euro 19 Billion (20.5 USD billion) in assets under administration to Athora Germany for a purchase price of Euro 610 million (658.71 USD million).
- May 2022: Munich Re enhanced the acceptance of artificial intelligence (AI) with its new "CertAI" validation service. This helped the company to better cater to the clients and gain more market share.
