Ceded U.S. health insurance premium to the reinsurance market has soared to $203 billion in 2025, up from $59 billion in 2016—a jump of more than 300% over the decade, according to a new AM Best report published in September 2026.
The report, Best’s Market Segment Report: Global Reinsurance – Health, attributes the growth to elevated high-cost claims, rising utilization, and persistent medical cost trends that are pushing U.S. health insurers toward external reinsurance solutions. These arrangements are increasingly viewed as essential tools for managing large claims exposure while improving capital efficiency.
The shift is not confined to the U.S. market. In the Asia-Pacific region, AM Best notes that growing consumer demand, persistent protection gaps, and evolving regulatory requirements are similarly driving health insurers toward reinsurance partnerships.
Industry stakeholders will have an opportunity to explore these trends further at AM Best’s Europe Insurance Market Briefing, scheduled for Thursday, November 5, 2026, in London.
As medical cost inflation shows little sign of easing globally, health insurers across multiple regions are likely to deepen their reliance on reinsurance to manage volatility and capital strain – a trend worth monitoring as 2026 draws to a close.
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