Global insurance and reinsurance premiums evolution 2008-2017
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These premiums rose from 4 220 billion USD in 2008 to 4 892 billion USD in 2017, a total growth of 15.92% over the entire period.
The slowdown of premiums observed over the European continent has been largely offset by the growth of premiums in Asian countries, headed by China.
Reinsurance, on its part, has increased at a more sustainable pace than the one noted in direct insurance, up by 4% on annual average pace. Reinsurance premiums set at 180 billion USD in late 2008 grew to 245 billion USD, a 36% growth throughout the period.
Remarkably, the percentage of reinsurance cessions has remained more or less stable during the recent decade. Reinsurance cession rate set at 4.26% of direct premiums in 2008 rose to 5% in 2017, a rate identical to the one reported in 2005.
Evolution of insurance and reinsurance premiums: 2008-2017
In billions USD
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
Insurance premiums | 4 220 | 4 110 | 4 336 | 4 566 | 4 599 | 4 594 | 4 755 | 4 554 | 4 703 | 4 892 |
Reinsurance premiums | 180 | 190 | 200 | 220 | 230 | 240 | 245 | 240 | 230 | 245 |
Cession rate (%) | 4.26 | 4.62 | 4.61 | 4.81 | 5 | 5.22 | 5.15 | 5.27 | 4.89 | 5 |
Reinsurance market concentration
The reinsurance market is relentlessly getting concentrated with the five major reinsurers tightening their grip over the sector year by year. Their market share rose from 17% in 1980 up to 56% in 2017.
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The other significant figures show that the top ten reinsurers account for more than 75% of global premium while the overall underwritings made by the top twenty account for 92% of the overall premiums, including all reinsurers.
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