The Role of Reinsurance in Economic Resilience

This document is a report that discusses the significance of reinsurance in enhancing the resilience of societies through a well-regulated reinsurance market. It outlines the role of Insurance Europe’s Reinsurance Advisory Board (RAB) in representing the European reinsurance industry, which accounts for over 50% of global reinsurance premium income. The report details how reinsurance diversifies risks associated with natural disasters and major catastrophes, thereby stabilizing local insurance markets. It emphasizes the need for effective global risk transfer and the importance of reducing barriers to cross-border reinsurance transactions. The document also presents recommendations for regulatory policies that promote the free flow of reinsurance capital, enhance financial stability, and encourage innovation in the insurance sector. Furthermore, it addresses the growing protection gaps due to climate change and demographic shifts, advocating for risk-based regulation that supports the reinsurance industry’s capacity to manage complex risks and provide affordable coverage.