Insurers are becoming more sophisticated in their reinsurance purchasing and there is increasing demand for customised and strategic solutions, according to a new report from Swiss Re.

It says insurers and large corporations are moving to centralise reinsurance buying across lines of business and territories.

This has been driven by industry consolidation, globalisation of risks, technological innovation and regulatory reform.

“This has led to higher limits and higher retentions, as well as the substitution of local contracts with larger and more complex solutions,” Chief Economist Kurt Karl says.

“However, this goes hand in hand with a greater need for tailored (re)insurance structures that address unique situations and can sometimes be enhanced with innovative features to meet specific client needs.”

The full study can be accessed here.