Swiss Re forecasts higher demand for reinsurance

Demand for property and specialty reinsurance is rising due to higher property values.

Swiss Re anticipates a focus on increasing demand for reinsurance protection, as the insurance industry begins its renewal discussions. 

Urs Baertschi, Swiss Re's CEO of Property & Casualty Reinsurance, noted that whilst industry challenges remain consistent with last year, they have intensified, driving higher demand. 

“Faced with elevated natural catastrophe risks, economic uncertainty and geopolitical instability, reinsurance is the natural way for insurers to protect themselves from outsized losses,” Baertschi said.

Demand for property and specialty reinsurance is rising due to higher property values, urbanization, and inflation-driven repair costs. 

The Swiss Re Institute reports that global insured losses from natural catastrophes exceeded US$100b for the fourth consecutive year in 2023, with 2024 on a similar trajectory, having already incurred US$60b in losses in the first half of the year—62% above the ten-year average.

Swiss Re also identifies growing reinsurance demand in the engineering sector, particularly for renewable energy projects, in line with the positive construction industry outlook. 

The cyber reinsurance market is also expected to continue expanding as awareness of cyber attack risks grows.