A history of reinsurance

The first evidence of reinsurance contracts dates back to the end of XIV century, when the world's first insurance policy was issued in Genoa. Insurers (individual persons) of that time, in order to protect themselves from great risks, began to transfer part of their risks to other insurers. And the first such contract with legal features of the reinsurance contract was concluded between two merchants concerning goods sent from Genoa to Bruges.

The development of industrial production in the countries of Europe from the middle of XIX century led to an increased need for insurance of larger risks. In order to meet this need, insurers had to use reinsurance, which enabled them to provide the necessary insurance coverage in large volumes. As a consequence, the first independent company “Cologne Re” was established in Cologne in 1846, dealing exclusively with reinsurance. In the following decades many specialized companies were established, such as "Frankfurt Re" in 1857, "Swiss Re" in 1863, "Munich Re" in 1880. The creation of such companies, professionally specialized in reinsurance, had a great impact on the further development of the insurance industry.

As of end 2022, the world's 10 largest reinsurance companies have collected more than 250 bln. USD in premiums with total equity of 629 bln. USD.