Kathmandu. With developing markets adopting more advanced underwriting practices and innovations, the Asia Pacific region is projected to record the highest growth in the global reinsurance market with an estimated compound annual growth rate (CAGR) of 14.2 per cent from 2022 to 2031.
According to Allied Market Research, the global reinsurance market is projected to register a CAGR of 10.8 per cent from 2022 to 2031. This is equivalent to a market value of $1.344 trillion by 2031. Which is driven by the growing demand for insurance products and increased risk awareness after the Covid-19 pandemic.
Treaty reinsurance led the market in 2021. Which accounted for more than two-thirds of the global market share.
Due to its streamlined underwriting process, it is expected to continue to dominate with an estimated CAGR of 11.9 per cent by 2031.
In terms of applications, property and accident reinsurance accounted for nearly two-thirds of the market in 2021. The sector is strong because of its role in covering the repair and replacement costs of damaged commercial assets.
Meanwhile, life and health reinsurance is expected to grow rapidly with a CAGR of 12.8 per cent. Which is supported by the growing demand for insurance during and after the pandemic.
