Life and health reinsurance

The general framework conditions in international life and health reinsurance can in principle be described as favourable for the coming two to three years. In developed insurance markets such as the United States, Japan, United Kingdom and Germany this assessment is coloured by the demographic trend, i.e. the ageing of the population, as reflected in heightened risk awareness. This is of particular benefit to annuity and health insurance products. Increasing urbanisation in leading emerging markets such as China, India and Brazil is fostering a rapidly growing middle class, which to a greater extent than before is clamouring for insurance solutions designed to protect surviving dependants and afford individual retirement provision for policyholders.

With this in mind, primary insurers are looking for tailored reinsurance solutions that support their own capital, liquidity and risk management. This longer-term trend has been particularly evident during the international financial market crisis, which also left a clear mark on the insurance sector. In the coming years we expect the reinsurance market to develop a more vigorous growth momentum than the primary market. Despite fierce yet professionally conducted competition among life/health reinsurers, earnings prospects will remain on a satisfactory level.