Breaking News
Translate

Insurers cede $260bn of global premiums to reinsurers in 2018

By Rosemary Onuoha

Primary insurers ceded about $260 billion to the global reinsurance markets in 2018, representing five percent of direct premiums written for the year.

Insurance

Swiss Re Institute disclosed this in  a report which indicated that  $200 billion of the amount ceded were from non-life premiums, which had a higher cession rate of around 8.4 percent.

In contrast, only around two percent of life premiums were ceded to reinsurers, representing about $60 billion.

Swiss Re attributed the difference to the dominance of savings premiums in life, which are typically not reinsured.

Party Executives shun Usman Jibrin as he picks APC Governorship nomination forms(Opens in a new browser tab)

The report stated, “In non-life, cession rates among emerging regions – particularly emerging Asia (excluding China), the Middle East, Africa and Latin America – are higher than overall, indicating that these countries are of higher importance in the reinsurance sector than in the primary industry.

“The U.S and Canada continue to dominate the markets in reinsurance, representing a third of the global premiums ceded in non-life and 53 percent in life, although cession rates were found to vary considerably by line of business.

“For example, cession rates in motor are very low at around four percent, but much high in property (16%), liability (14%), and special lines such as aviation, marine or engineering (over 30%).”

Swiss Re believes that the reinsurance sector is better positioned with respect to some of the major vulnerabilities facing primary insurers.

Vanguard

All rights reserved. This material and any other digital content on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from VANGUARD NEWS.

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.