Reinsurance Carriers

Reinsurance Carriers

Brief Excerpt from Industry Overview Chapter:

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 Everest Re, Reinsurance Group of America, and TransRe (all based in the US), as well as Munich Re (Germany), SCOR (France), and Swiss Re (Switzerland).

COMPETITIVE LANDSCAPE

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 50 largest firms account for nearly 100% of revenue.

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 originally underwriter by other insurance companies. Premiums assumed from property/casualty reinsurance account for about 60% of US industry revenue. Life and health reinsurance, which accounts for about 30% of revenue, includes whole, term, and universal life policies; annuities; and group and individual health care coverage.