Demand for reinsurance will increase next year as new opportunities develop, according to an Aon Benfield study launched at the annual Rendezvous de Septembre in Monte Carlo.

The reinsurance broker’s latest market outlook predicts a boost from updates to ratings agency capital models, the continued privatisation of risks from government pools and expansion into new lines of business.

Key areas of opportunity include US mortgage risk and annuity risk, where demand remains high for risk transfer solutions.

The report says mergers and acquisitions activity in global insurance and reinsurance markets increased dramatically this year.

Deal volume totalled $US73.3 billion ($103.34 billion) across 461 deals to September 1, compared with $US16.8 billion ($23.68 billion) across 387 deals in the previous corresponding period.

At September 1 global insured catastrophe losses had reached $US16 billion ($22.56 billion), well below the historical 10-year average of $US61 billion ($86 billion).

Barring major events, reinsurer capital is expected to continue growing in the second half of this year.

Meanwhile, Munich Re says it is playing an active role in managing disruption with innovative insurance solutions and expanded services.

Board of Management member Thomas Blunck stresses that partners and co-operation models help supplement Munich Re’s expertise.

For example, with cyber coverage, co-operation with large IT providers is crucial.

“We want to develop more of this type of solution that extends the boundaries of insurability, and we want to develop them more quickly,” Mr Blunck said.

Most traditional reinsurance treaties are renewed each January 1 and the Rendezvous, which runs until Thursday, marks the start of annual renewal negotiations.