Insurance Underwriting, Claims and Reinsurance: Global Industry Report

Summary

Non-life property and casualty underwriting remained profitable in the latest available data, with premiums growing faster than claims across OECD reporting jurisdictions ²¹. Four major reinsurers reported a combined non-life ratio of about 86.4% under IFRS 17, as cited by the OECD ³. No consistent global market size is available, so the report uses no headline figure. Principal risks include rising insured natural catastrophe losses ⁴, softening reinsurance pricing in some regions ⁹, and supervisory attention to private credit, geoeconomic fragmentation and AI adoption ⁷. The outlook points to continued price competition and growing reinsurance and alternative capital, with wide uncertainty around catastrophe losses. Most evidence is at aggregate or reinsurer level; primary insurer claims and operating data are largely absent from the verified sources.

Key findings

1. 1

   Underwriting margins were positive in the latest period

   Non-life gross premiums written grew by an average of 8.2% in nominal terms, faster than gross claims payments at 7.5% nominal, and the non-life combined ratio was below 100% in almost all OECD reporting jurisdictions ². The OECD describes underwriting profitability as strengthened ¹. These are averages across reporting jurisdictions, not a global total.

   Confidence: High
2. 2

   Reinsurer results are strong on a named-peer basis

   Munich Re, Swiss Re, Hannover Re and SCOR reported a combined non-life ratio of about 86.4% under IFRS 17, as cited by the OECD from Fitch Ratings ³. The IAIS reports that reinsurers remain well capitalised and that underwriting results are stabilising after elevated catastrophe losses ⁷. The 86.4% figure covers four firms and is not a sector average.

   Confidence: Medium
3. 3

   Catastrophe losses are the main volatility driver in the pack

   Global insured natural catastrophe losses are on trend to approach USD 145 billion, following 5-7% real annual growth. Swiss Re estimates a 1-in-10 probability that global insured losses could reach USD 300 billion ⁴. Both are estimates or forecasts, not observed outcomes.

   Confidence: Medium
4. 4

   Reinsurance is growing faster than primary property and casualty premiums

   Reinsurance premiums grew at about a 7% CAGR over the past decade, faster than primary P&C premiums, and retrocession volumes grew by about 8 to 10% CAGR as insurance-linked securities issuance doubled ⁵. The global P&C market is estimated at USD 2.4 trillion ⁵.

   Confidence: Medium
5. 5

   Market size data are too inconsistent for a headline figure

   A vendor estimate puts the global reinsurance market at USD 472.3 billion, with a vendor forecast of USD 1 trillion for a later period ¹⁰. Another vendor estimate in the pack gives USD 67.2 billion . The divergence is too large to support a single market size, and the pack gives no audited figure.

   Confidence: Qualitative

1Industry definition and scope

This report covers non-life property and casualty (P&C) insurance, focused on three linked functions: underwriting (accepting risk and setting prices), claims handling (assessing and settling losses) and reinsurance (primary insurers transferring part of their risk to reinsurers). The geographic scope is global. Where a source reports an average across OECD reporting jurisdictions, this report labels it as such ². The period is the latest available data in the verified sources.

Key terms are used as the sources define them. Gross premiums written and gross claims payments are the measures used for growth comparisons ². The combined ratio is the profitability indicator used by the OECD; the pack reports it only as being below 100% in almost all jurisdictions ². Under common practice, a combined ratio below 100% indicates an underwriting profit, but that reading is this report's interpretation, not a figure from the sources.

Definitions differ across sources. Swiss Re's reinsurance premium table covers both P&C and life and health business ⁶, while the Swiss Re P&C market estimate and growth rates cover P&C only ⁵. Retrocession, the reinsurance of reinsurers, is treated separately ⁵. Life insurance, brokerage operations and asset management are outside scope except where a source discusses them in relation to underwriting or reinsurance capital.

• Global traditional reinsurance capital 500USD billion Estimate Global, Latest available data [4]

2Market size, structure and value chain

No consistent, audited global market size is available for underwriting, claims handling or reinsurance. Vendor estimates diverge sharply: Global Market Insights values the global reinsurance market at USD 472.3 billion ¹⁰, while another vendor estimate in the pack gives USD 67.2 billion. This report therefore presents estimates as estimates and does not use either as a headline. The Swiss Re estimate of the global P&C insurance market at USD 2.4 trillion is a broader, association-level estimate ⁵. The IAIS reports total insurance sector assets of USD 42 trillion at the end of the latest period ⁷, which covers life and non-life business and is not comparable with premium-based market sizes.

Growth is more consistently reported than size. Reinsurance premiums grew at about a 7% CAGR over the past decade, faster than primary P&C premiums ⁵. Retrocession volumes grew at about 8 to 10% CAGR ⁵. The vendor forecast of USD 1 trillion from a USD 503.4 billion base is a forecast from a market research firm and should be treated as low-confidence ¹⁰.

The value chain runs from policyholders to primary insurers, which underwrite risk and handle claims, then to reinsurers and retrocessionaires, which take on ceded risk. Capital sits at each step. Global traditional reinsurance capital is estimated at around USD 500 billion, with about USD 50 billion from the catastrophe bond market as alternative capital ⁴. Revenue comes mainly from premiums and investment income. The IAIS highlights growth in insurers' private credit investments as a supervisory priority, but the pack gives no figure for its size ⁷.

Structure is concentrated at the top. Swiss Re operates through three business units, including Property & Casualty Reinsurance, across 67 offices in 27 countries ⁶. The pack gives no market share data for the sector, so concentration cannot be measured.

Vendor market sizes are shown only as estimates. The growth chart averages OECD reporting jurisdictions and is not a global figure.

3Customers, demand and adoption

The verified sources do not segment customers by type, size or product, and they do not report purchasing criteria, retention rates or customer satisfaction. The report therefore describes demand at the level the sources support: primary insurers buying reinsurance, and the risk-carrying demand that feeds premium growth.

Demand for protection is rising with exposure. Global insured natural catastrophe losses are on trend to approach USD 145 billion, growing 5-7% a year in real terms ⁴. This is a forecast, and it points to growing need for cover against extreme events. Lower retention by cedents, meaning primary insurers keep less of their own risk, shifts more premium and exposure to reinsurers ¹. That shift supports reinsurers' underwriting results if claims stay moderate ¹.

Buyer conditions vary by region. Aon reports that pricing decreased 1 to 10% in Asia and EMEA in the most recent quarter, was flat in North America, and that capacity was abundant ⁹. For buyers, that points to better terms in those regions. Aon also expects favorable year-end treaty renewals to fuel continued price competition ⁹. This is broker commentary and a forecast.

Barriers and changing expectations are not quantified in the pack. Adoption rates of digital claims or underwriting tools are not verified. The IAIS treats AI adoption as a supervisory priority, without a percentage ⁷.

• Insured natural catastrophe losses (trend) 145USD billion Forecast Global, Latest available data trend [4]

4Competitive landscape and key players

Large global reinsurers are the best-documented providers in the pack. Munich Re, Swiss Re, Hannover Re and SCOR together reported a combined non-life ratio of about 86.4% under IFRS 17 ³. Swiss Re combines reinsurance and insurance through three business units, with its P&C Reinsurance unit covering property, casualty and specialty lines ⁶. Individual combined ratios for each firm are not in the pack, so this report cannot compare their margins one by one.

Competitive pressure is coming from two directions. First, price competition in reinsurance: Aon expects favorable treaty renewals to keep pricing under pressure into the next period ⁹. Second, alternative capital: insurance-linked securities issuance has doubled since the start of the measured period, and retrocession volumes are growing faster than primary premiums ⁵. Alternative capital of about USD 50 billion sits alongside traditional reinsurance capital of about USD 500 billion ⁴. These are estimates.

Business models differ between primary insurers, reinsurers and brokers. Primary insurers earn margin on underwriting and manage claims directly. Reinsurers earn margin on ceded risk and depend on pricing discipline and moderate losses. Brokers, such as Aon, earn fees and provide market commentary rather than carrying risk ⁹. The pack does not provide cost-to-income ratios, market shares or primary-carrier results, so differentiation between providers cannot be quantified.

Concentration is high among reinsurers and provider types are not evenly represented. Comparable examples are limited to the named reinsurers and one broker, and the pack contains no verified data for specialist MGAs, insurtech providers or primary carriers.

• Combined non-life ratio, four major reinsurers 86.4percent Observed Global (four named reinsurers), Latest available data [3]

The 86.4% figure is a combined figure for four named reinsurers, as cited by the OECD from Fitch Ratings. It is not a sector average.

5Technology, operations and workforce

The verified sources do not quantify automation or AI adoption in underwriting or claims. The IAIS reports AI adoption as a key supervisory priority in its latest market report ⁷, which signals that supervisors expect it to affect governance and risk, but the pack gives no rate of use, productivity gain or cost saving.

Operating indicators are also missing. Claims-handling cost ratios, cycle times and claims fraud rates by line were not verified . Cost-to-income ratios for underwriting and claims operations were not found. Without these, the report cannot assess whether technology has improved operating efficiency.

Operating scale is growing. If reinsurers take on more premium as cedents retain less ¹, their underwriting and risk-modeling capacity must expand. Swiss Re's footprint of 67 offices in 27 countries ⁶ shows the multi-jurisdiction operations that reinsurers run, which increases the need for consistent underwriting and claims standards. This is the report's interpretation.

Workforce supply and skills are not covered by the verified sources. Talent shortages, skills mix and staffing trends in underwriting and claims cannot be assessed from this pack.

6Regulation, standards, risk and sustainability

The pack does not identify a single binding jurisdiction for underwriting and claims conduct. Regulatory content is therefore at the international level, and the report separates binding rules from voluntary standards. The International Association of Insurance Supervisors (IAIS) is a voluntary membership body of insurance supervisors from more than 200 jurisdictions, covering 97% of world insurance premiums ⁸. In December of the latest period, the IAIS adopted the Insurance Capital Standard, the first comprehensive global capital standard for insurance supervision ⁸.

Whether and how the Insurance Capital Standard binds any jurisdiction is not verified in the pack. Until local supervisors adopt it in law or rules, it should be treated as an international standard, not a binding requirement. Conduct rules such as fair claims handling are not verified in the pack for any jurisdiction . Readers operating in a regulated market should check the local binding rules directly.

Reinsurer reporting uses IFRS 17 ³. The IAIS names growth in insurers' private credit investments, geoeconomic fragmentation and AI adoption as key supervisory priorities ⁷. These are supervisory focus areas, not rules.

Operational and catastrophe risk is the most material risk in the pack. The 1-in-10 scenario of USD 300 billion in global insured losses is an estimate ⁴. Environmental exposure is therefore mainly catastrophe-driven. The pack gives no verified data on fraud, privacy, cyber underwriting or social factors. This report does not provide legal, actuarial or investment advice.

Standards are described by their status as stated in the sources. Binding status in any particular jurisdiction was not verified.

7Challenges, opportunities and case examples

The main challenge is volatility. Catastrophe losses are growing in real terms, and the 1-in-10 loss scenario is large relative to reinsurance capital ⁴. Price softening in some regions reduces margins for underwriters if loss experience worsens ⁹. Alternative capital adds competitive pressure on traditional reinsurers ⁵.

The main opportunity is growth in reinsurance demand. Reinsurance premiums grew about 7% a year over the past decade, and retrocession grew 8 to 10% a year ⁵. Premium growth exceeded claims growth in OECD reporting jurisdictions ², which, if sustained, supports underwriting margins.

Case example one: Swiss Re. It runs three business units and reports on a global footprint of 67 offices in 27 countries ⁶. Its annual report presents a reinsurance premium table with a figure of 430, but the unit and currency are not stated in the extract, so it is not used for comparison ⁶.

Case example two: Munich Re, Swiss Re, Hannover Re and SCOR. Together they reported a combined non-life ratio of about 86.4% under IFRS 17, which the OECD cites from Fitch Ratings ³. This is a group result and should not be read as a ranking of individual firms.

Case example three: Aon. Its quarterly commentary shows regional pricing trends and a forecast of continued competition ⁹. It is a broker's view of the market, not an underwriting result. Comparable examples are limited: the pack contains no verified results for primary insurers or specialist MGAs.

8Outlook and strategic implications

The base case, based on the verified sources, is continued premium growth above claims growth, with moderating pricing in some regions ²⁹. The OECD and IAIS both point to reinsurers' results stabilising ¹⁷. This is an interpretation of the sources, not a forecast from any one of them.

The downside case is a large catastrophe year. The 1-in-10 scenario of USD 300 billion in global insured losses ⁴ would test reinsurer capital and could reverse the margin gains in the latest period. The upside case depends on loss experience staying moderate, which would sustain margins while reinsurance and alternative capital continue to grow ¹⁵.

Practical implications differ by stakeholder. Primary underwriters should review exposure growth and treaty terms against the catastrophe trend ⁴⁹. Claims managers should watch for loss-cost inflation, which the pack does not quantify. Reinsurers should weigh price competition against capital adequacy ⁹⁷. Supervisors should track private credit, AI adoption and geoeconomic fragmentation ⁷. Investors should treat vendor market sizes as low-confidence and rely on reported results.

9Conclusion

The verified evidence shows positive underwriting margins in OECD reporting jurisdictions and strong results among four major reinsurers, alongside rising catastrophe exposure and growing alternative capital. The most defensible takeaways are that growth outpaces claims in aggregate, that catastrophe losses drive volatility, and that market size data remain unreliable. Operating, fraud and workforce evidence is the main gap to close.

How this was built

Sources

1. 1

   Global Insurance Market Trends (OECD), chapter on underwriting performance in the non-life insurance sector

   OECD Official statistics

   oecd.org
2. 2

   Global Insurance Market Trends (OECD report, executive summary)

   OECD Official statistics

   oecd.org
3. 3

   Global Insurance Market Trends (OECD PDF), reinsurer combined ratio reference

   OECD (citing Fitch Ratings) Official statistics

   oecd.org
4. 4

   sigma 1: Natural catastrophes: insured losses on trend to USD 145 billion

   Swiss Re Institute Industry association

   swissre.com
5. 5

   sigma 3: Growing stronger: Property & Casualty market adapts to riskier world

   Swiss Re Institute Industry association

   swissre.com
6. 6

   Annual Report (Swiss Re Ltd)

   Swiss Re Ltd Company report

   swissre.com
7. 7

   Global Insurance Market Report (GIMAR), press release and report overview

   International Association of Insurance Supervisors (IAIS) Regulator

   iais.org
8. 8

   Insurance Capital Standard adoption and IAIS mandate (IAIS profile, via Wikipedia)

   International Association of Insurance Supervisors (profile summarised on Wikipedia) Regulator

   en.wikipedia.org
9. 9

   Q4 Global Insurance Market Overview

   Aon plc Company report

   aon.com
10. 10

    Reinsurance Market Size and Share (Global Market Insights, market research)

    Global Market Insights Inc. Market research

    gminsights.com