- "Munich Re posts solid quarterly result"-Joachim Wenning,Chair of the Board of Management
- Aviva reports "excellent six months"-Amanda Blanc, Group CEO
- Legal & General reports continued good performance for first half
- Higher costs for insurers put the squeeze on the price of motor insurance-ABI
- "AIG has another excellent quarter"-chairman & ceo Peter Zaffino
- Berkshire Insurance Underwriting earnings down-insurance investment income up for half year
- Cybersecurity revenue in insurance sector set to grow at 10% CAGR to $10.6bn in 2025--GlobalData expired
- Over 20% of global executives believe blockchain is all hype as leading insurance blockchain body fails-GlobalData expired
- Liberty Mutual reports net loss expired
- Markel reports latest financials expired
- European Sustainability Reporting Standards are welcome but need refining and phasing in-Insurance Europe expired
- Review of ELD must not undermine availability of insurance or growth of environmental liability insurance market-Insurance Europe expired
26th June 2022
ReinsurTech:collecting, centralising and analysing data is key
While much has been written about the latest InsurTech trends, the world of ReinsurTech has been quietly developing apace and here the focus is on solving long-standing operational and strategic challenges, says Tim Spencer, Prima XL UK sales manager, London Markets, UK & Ireland.
InsurTech has long been a buzzword in our industry and as the insurance value chain reaches mature stages of digitisation, the next step is extending this chain to reinsurance.
Here, pure reinsurers and ceding insurers alike have acknowledged operational inefficiencies and lack of data oversight and granularity that significantly snowball across the market. The resulting impacts-from lack of claims recoveries, to late renewals-ultimately have a lasting lag on the industry’s efficiency and profitability.
As an example, one long-standing issue across the reinsurance industry is the time it can take for monthly or quarterly closings to be resolved, resulting in long waiting periods to receive premiums and claims recoveries. Greater agility in a modern system can even enable a preferred time to close the books if desired.
Meanwhile, handling multiple currencies effectively is another area of contention along with the sometimes delicate issue of internal IT-dependency endeavouring to scale a business on legacy systems and spreadsheets. Slow renewals processes are another major challenge, where duplicative and manual processes create unnecessary delays that reinsurTech can now address.
All in all, these time-consuming ceding processes lessen the ability for insurance or broker partners to report internally or to an auditor or regulator, while also hinder negotiation for improved or more accurate reinsurance contracts, and expedite renewals processes and claims recoveries.
There is a strong and well-recognised need across the reinsurance sector for a reinsurer and its broker to have centralised oversight of insurance policies, within one platform for greater visibility and security in data processing.
A modern system can offer a route to greater contract certainty. In addition, there is demand for technology that is able to handle all types of reinsurance contracts, including treaties, facultative reinsurance, proportional and non-proportional contracts, excess of loss, stop loss, quota share, and more, across life and non-life activities.
The question for many is how to transform their core systems to achieve the oversight and data granularity they need using technology that won’t be out of date the moment it is deployed.
ReinsurTech in the cloud
Cloud-based ReinsurTech is increasingly acknowledged as the natural solution, following the wider adoption of the cloud in primary insurance systems and widespread awareness of the scalability, flexibility and interoperability of cloud-based platforms allowing reinsurers to plug into wider technology ecosystems.
The cloud is recognised as an ideal solution as it removes the upgrade, maintenance and security burden from reinsurers or ceding insurers and offers an open, scalable platform that is accessible and frees up their in-house resource to be deployed on more value-add activities.
Ultimately, ReinsurTech is making headway in our industry in the form of cloud-based core systems upgrades. Those reinsurers and ceding insurers who have solved the challenge of centralising and tracking all the information related to their reinsurance policies-from treaties and facultative policies, to claims, incidents, accounting data, technical data, auxiliary data, financial data, renewals, switching and more-are able to have improved contract certainty, more accurately price their products and services, and operate more efficiently in this competitive market.
Tim Spencer will be attending the Monte Carlo Rendez-Vous in September.
Prima Solutions(29 articles)