Driven By Rebounding Capital In The Sector And Healthy Reinsurers

WEB Reinsurance Capacity Increased Through Year End

Driven by Rebounding Capital in the Sector and Healthy Reinsurers

Reinsurance capacity increased through year end, driven by rebounding capital in the sector and healthy reinsurers. This is according to a report by Guy Carpenter and AM Best. Total dedicated reinsurance capital increased by 10% to $632 billion. This is the highest level since 2008.

Key Findings

• Traditional dedicated reinsurance capital increased by 10% to $556 billion.
• Third-party capital in reinsurance, including that from catastrophe bonds and insurance-linked securities, increased by 12% to $76 billion.
• Reinsurance rates have increased in recent years due to a number of factors, including the increasing frequency and severity of natural disasters.

The increase in reinsurance capacity is good news for insurance companies, as it will help them to manage their risk more effectively. It is also good news for reinsurers, as it will allow them to grow their businesses.

Conclusion

The increase in reinsurance capacity is a positive development for the insurance industry. It will help insurance companies to manage their risk more effectively and reinsurers to grow their businesses. This will ultimately benefit consumers, as it will lead to more affordable and accessible insurance products.