The life and health reinsurance market has ‘more barriers to entry than P&C’ with just four players dominating 50% of business.
The global life and health (L&H) reinsurance sector has more significant barriers to entry compared to property and casualty (P&C), Robert Mazzuoli, director of EMEA Insurance at Fitch has found.
“The P&C market is easier to enter by having the right amount of capital whereas L&H is more about nurturing long-term relationships and creating tailormade policies,” he said. The increased difficulty in entering the [L&H] market has created an oligopoly in which Europe based Munich Re, Swiss Re, Hannover Re and SCOR occupy 50 percent of the market.
“The oligopolistic nature of the market doesn’t mean it’s lacking competition, however. We are in fact seeing healthier competition. But a new entrant to the market would need the backing of a more established player and the expertise these players bring.”
reinsurance, health, Fitch, Asia