A global market research company has predicted the continual expansion of the global reinsurance market, in keeping with its recent steady growth.

Market Research Future said the market size of the industry was valued last year at nearly $350 billion and is projected to grow from nearly $366 billion in 2025 to more than $554 billion by 2034, exhibiting a compound annual growth rate of 4.7 per cent.

The New York firm said the growth is driven by the increasing demand for risk management solutions, the growing complexity of global risks, and the need for insurers to manage their exposure to large-scale events and catastrophes.

Faced with more unpredictable risks, such as natural disasters, pandemics and economic disruptions, the demand for reinsurance to help insurers manage these risks is rising.

Key drivers of market growth include increasing demand for risk management solutions; global economic growth and rising insurance penetration; complexity of global risks; and natural disasters and catastrophes.

The report said: “Economic growth, particularly in emerging markets, is leading to an increase in insurance penetration. As insurance markets expand globally, especially in regions like Asia-Pacific and Africa, the demand for reinsurance solutions to back these growing insurance markets is also on the rise.

"The complexity and scale of global risks, such as cyberattacks, climate change and geopolitical tensions, are making reinsurance more critical for insurers. Reinsurers provide expertise and financial protection for insurers dealing with complex and large-scale risks that go beyond their capacity.

"Natural disasters, including hurricanes, earthquakes and floods, have become more frequent and severe, driving the need for reinsurance. Reinsurers play a key role in covering the financial impact of such events and helping insurers maintain financial stability.“

The overview of the industry, was published yesterday by Market Research Future, the global market research company.

Information was provided by coverage, type, line of business, risk type, underwriting technique and region.