A prolonged soft market, an erratic business cycle, and tremendous losses from manmade and natural catastrophes are putting pressure on reinsurers to adapt and come up with creative solutions. In response, reinsurers are focusing technology investments on attracting insurer clients and improving profitable decision-making.
Most reinsurers see data analysis as core to their business and to supporting these solutions. They are investing in BI and data analytics as well as the use of sophisticated, specialized components such as modeling tools.
Reinsurers also replacing core systems, as many are centralizing business and dealing with an increase in audits and regulation. Other drivers include moving from Excel spreadsheets to centralized systems, pressure from internal and external auditors, and managing large amounts of regulatory. However, the pressure is not for modern systems; it is for stable and robust systems that can support current business.
As reinsurers continue to adapt in the face of change, technology investments in business intelligence and analytics, BPM, and compliance will be top priorities. For more on trends in reinsurance, see Novarica’s report Business and Technology Trends: Reinsurance.
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