January 2021 – Reinsurers are focusing their technology strategies on attracting insurer clients and improving profitable decision-making, including core systems replacement and investments in business intelligence and modeling. At the same time, reinsurers are actively monitoring emerging technologies like blockchain.
This report provides an overview of reinsurers’ business and technology issues, data about the marketplace, and several examples of recent technology investments by reinsurers.
Topics
- Recent market and financial trends
- Active reinsurer landscape
- Technology issues, priorities, and examples by functional area
- Top technology priorities for 2021 and beyond
Key Points and Findings
Business intelligence and modeling are critical. Data analysis is central to the reinsurance business. Pressure from competitors means moving from Excel-based analysis to more sophisticated technologies. Larger reinsurers are investigating AI and machine learning.
Some reinsurers serve as data aggregators. They are packaging and providing data and book of business analytics to their small and midsized insurer clients.
Reinsurers are replacing core systems. Reinsurers are investing in new core systems to centralize business and deal with an increase in audits and regulation.
Reinsurance rate activity depends on client relationships, geographies, lines of business, and loss records. Insurers are currently raising capital and seeking rate increases to elevate their returns above their costs of capital.
About the Author
Mitch Wein
Mitch Wein is an Executive Principal in the Insurance Practice at Datos Insights. He has expertise in international IT leadership and transformation as well as technology strategy for banking, insurance (life, annuities, personal, commercial, specialty), and wealth management. Prior to joining Datos Insights, Mitch served in senior technology management positions at numerous financial institutions. At Bankers Trust (now Deutsche Bank), he automated...
Other Authors
Datos Insights
We are the advisor of choice to the banking, insurance, securities, and retail technology industries–both the financial institutions and the technology providers who serve them. The Datos Insights mission is to help our clients make better technology decisions so they can protect and grow their customers’ assets.
Steven Kaye
Steven Kaye is Head of Knowledge Management at Datos Insights, and lead editor of the firm’s Business and Technology Trends in Insurance series. He has managed a wide range of research projects since joining the firm in 2008. Previously, Steven worked for Accenture as an insurance researcher focused on the U.S. life and property/casualty markets. He also served in both knowledge management...