Tides turning for reinsurance on higher interest rates, lower Covid-related claims

REINSURERS are being lifted by a rising tide of higher interest rates and lower claims. Next year could be an even better year, as emerging Asia’s growing wealthy raise their purchases of life and health (L&H) insurance.

The reinsurance industry, which insures the insurance companies, was badly hit in 2020 by unusually high claims linked to climate-related catastrophes and the Covid-19 pandemic.

Munich Re, the world’s largest player, reported a 55 per cent decline in its 2020 profit. Swiss Re, the second-largest, reported a loss.