Life & health reinsurance on the rise – what is driving the growth?
Life & health reinsurance on the rise – what is driving the growth? | Insurance Business Australia
Reinsurance
Life & health reinsurance on the rise – what is driving the growth?
Segment to see gains in the next four years
Reinsurance
By
Kenneth Araullo
Research indicates that the life and health reinsurance market is poised for growth, expected to surpass a notable milestone in the next four years.
Insights indicate that the segment is projected to grow to $225.7 billion by 2028, advancing at a compound annual growth rate of 5.2%. This expected growth is attributed to factors including the rise in chronic diseases and disabilities, the ongoing impacts of the COVID-19 pandemic, the burgeoning middle class in developing nations, and an uptick in life insurance claims.
Key trends projected to shape the market, according to the study by Research & Markets, include the integration of automated reinsurance platforms, the burgeoning role of artificial intelligence (AI), the application of blockchain technology, and an increase in industry consolidation through mergers and acquisitions.
What’s driving demand for life and health reinsurance?
Demand for life and health insurance policies is set to be a primary catalyst for the industry’s expansion. The COVID-19 pandemic underscored the value of life insurance, with heightened demand driven by the uncertainties linked to the virus and the high costs associated with private hospital treatments.
Highlighting this trend, Life Insurance Corporation (LIC) of India, the country’s top life insurer, reported selling approximately 2.17 crore policies in the fiscal year 2021-2022.
Further fueling the market’s growth is the escalating demand for telehealth services. In a recent report by FAIR Health Inc, a non-profit in the United States, there was a 7.3% increase in national telehealth utilization in April 2023, indicating a shift towards remote healthcare services.
Another trend gaining momentum in the life and health reinsurance sector is the increasing application of artificial intelligence (AI).
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