According to a new market report published by Transparency Market Research titled “Reinsurance Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018 – 2026,” the global reinsurance market was valued at US$ 241.14 Bn in 2017 and is expected to expand at a CAGR of 4.7% from 2018 to 2026, reaching a value of US$ 364.59 Bn by the end of the forecast period. According to the report, North America was a significant contributor to the reinsurance market in terms of revenue in 2017. The prominent market share of the region is due to the favorable regulatory environment and growth in property catastrophe protection in the reinsurance market across the region, especially in the U.S. and Canada.
Favorable regulatory environment and growth in property catastrophe protection driving the global reinsurance market
The global reinsurance market is currently driven by a favorable regulatory environment. Growing focus on sustainable growth has led to the relaxation in government rules globally. For instance, in September 2018, Insurance Regulatory and Development Authority (IRDA) approved revised reinsurance regulations in India. The core purpose behind revamping the regulations is that the maximum reinsurance business is held inside the nation and preference would be given to Indian domiciled entities. In 2016, the new SSN (Superintendence of Insurance) authorities removed the regulations which set minimum limits of insurers in projects involving small and medium enterprise. The new regulation now defines only maximum limits.