Market Trends of Germany Reinsurance Industry
Increasing Insurance Claim Across the Region is Driving The Market
Germany has seen a steady increase in insurance claims across various industries, such as health insurance, motor insurance, property and casualty insurance, and others. This steady increase in insurance claims will have a direct impact on the reinsurance market. By purchasing reinsurance, insurance companies reduce the risk of insolvency. Furthermore, reinsurance increases the capacity of the insurance company to bear the financial weight of increasing clients.
Natural disaster has is driving the growth of reinsurance market
In the previous year, across the globe, the losses due to natural disasters accounted for more than USD 280 Billion. In Germany, the loss due to natural disasters was estimated to be more than USD 4.5 billion in the previous year. Out of these, less than 25% were insured. Due to such disasters, people are inclined more towards buying insurance to safeguard their property and health. Events like this may result in a spike in insurance claims. Market discipline has increased as a result of such events and has a direct impact on the reinsurance market.
