5 reinsurers will dominate the global market
Wednesday, 11 07 2018, Category: Insurance and Reinsurance, Country: World
The property/casualty reinsurance sector will merge to end up in a similar structure as the global life reinsurance sector, SCOR CEO Denis Kessler said during a Nov. 6 S&P Global Ratings insurance conference in London.
In the life reinsurance space there are 6 leading players providing 80 to 85 percent of the total capacity, Kessler explained. He suggested that this is how the P&C reinsurance sector will look like after a wave of consolidation.
“If you take any global industry in the world, there are always around 5 leading players,” Kessler said, pointing to the airlines or telecoms industry. If the market is global you need to have a certain size to be able to cover the world and benefit from economies of scale, he explained. Therefore, there will be maybe 5 or 6 leading reinsurers in the world in the future dominating the market with some opportunities left for specialised reinsurers, he said.
Source: Intelligent Insurer