Re-Re-Remix: Operators will continue to expand their capacity and pursue alternative reinsurance structures

Over the five years to 2017, Health and Medical Reinsurance industry revenue has grown along with healthcare coverage as primary insurers used reinsurers to manage risk and increase their underwriting capacity. Moreover, rising stock market values have helped bolster investment income in recent years. Over the five years to 2022, to reach rising demand, industry operators will continue to expand their capacity and pursue alternative reinsurance structures. In addition, reinsurers will look to diversify product portfolios to mitigate fluctuations in any particular reinsurance line. Industry operators will likely also use reserves to stabilize their bottom lines, enabling them to achieve stronger credit ratings and receive more favorable treatment from capital markets...purchase to read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 12-17
5.0%
Forecast Growth 17-22
Profit
Employment
5,377
Businesses
140
Market Share of Companies

Industry Threats & Opportunities

  • Health insurers are turning to reinsurers for additional protection and risk management
  • Many medical malpractice insurers have withdrawn from the market due to insolvency issues
  • Reinsurers will use reserves to stabilize their bottom lines
  • Industry Report - Industry Key Buyers Chapter

    The Health and Medical Reinsurance industry has a low level of market share concentration, with the top four players accounting for 27.3% of revenue. Reinsurance Group of America (RGA) and General Reinsurance Corporation make up 25.2% of industry revenue, thus dominating the industry. Over the five years to 2017, more insurance companies aimed to lower their risk by selling their health and medical insurance to other insurance companies. While health and medical reinsurance accounts for a small segment for a majority of US reinsurers' revenue, players in the industry aimed to expand their health segments through acquisitions. For example, PartnerRe Ltd. acq...purchase to read more.

    Additional Insights for the Health & Medical Reinsurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Health & Medical Reinsurance Industry are

  • Strong financial position
  • Disciplined underwriting processes
  • Ability to effectively manage risk
  • IBISWorld analysts also discuss how external factors such as Demand from health and medical insurance and Number of people with private health insurance in the Health & Medical Reinsurance industry impact industry performance..

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    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from health and medical insurance
  • Number of people with private health insurance
  • Total health expenditure
  • Yield on 10-year Treasury note
  • S&P 500
  • Median age of population

  • Current Performance
  • Quick recovery
  • Medical liability
  • Consolidation and globalization
  • Chart: Revenue Growth

  • Industry Outlook
  • Reinsurers continue to build reserves
  • Reform reshaping the market
  • Table: Health & Medical Reinsurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Health & Medical Reinsurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Health & Medical Insurance

  • Key Selling Industries
  • Insurance Brokers & Agencies
  • Reinsurance Carriers

  • Products & Services
  • Quota share reinsurance
  • Excess reinsurance
  • Chart: Health & Medical Reinsurance Industry Products and Services Segmentation

  • Demand Determinants
  • Underlying demand in primary insurance markets
  • Determinants of reinsurance capacity

  • Major Markets
  • Group health insurance plans
  • Government-sponsored health insurance plans
  • Individual health insurance plans
  • Chart: Major Market Segmentation for the Health & Medical Reinsurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Loss and loss adjusted expenses (loss ratio)
  • Other underwriting expenses (expense ratio)
  • Wages
  • Chart: Cost Structure Benchmarking – Sector vs Health & Medical Reinsurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Health & Medical Reinsurance Industry

  • Industry Globalization
    Reinsurance Group of America Inc.,
  • Table: Reinsurance Group of America Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Health & Medical Reinsurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Health & Medical Reinsurance Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of people with private health insurance (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Capacity
  • The supply of insurance and the maximum amount of insurance a company or market can underwrite based on financial strength, or the policyholder's surplus.
  • Cede
  • The action of an insurer passing risk to a reinsurer. The cedent purchases a contract indemnifying them for specific losses realized in assuming liability through the issuance of insurance policies.
  • Offshore
  • The relocation of a company's business process, such as accounting, from one country to another, whether the work is outsourced or stays within the company.
  • Retrocession
  • The transfer of risk from a reinsurer to another reinsurer
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Health & Medical Reinsurance Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Health & Medical Reinsurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Health & Medical Reinsurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Health & Medical Reinsurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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