Analytics, BPM/workflow, and auditing, compliance, and control among top tech priorities for the industry: Novarica
Boston, MA (Jan. 31, 2019) – The reinsurance business faces numerous challenges, including years of soft market conditions followed by sudden, sharp hardening periods; tremendous losses from man-made and natural catastrophes; and open-ended liabilities such as asbestos and terrorism, requiring reinsurers to adapt and come up with creative solutions. In a new report, Business and Technology Trends: Reinsurance, research and advisory firm Novarica provides an overview of reinsurers’ business and technology issues, data about the marketplace, several examples of recent technology investments by reinsurers, and top technology priorities for 2019 and beyond.
“Insurers are feeling the pressure to ‘simplify’ their products to appeal to Millennial consumers and better utilize online sales channels,” said Jeff Goldberg , Executive Vice President of Research and Consulting, and co-author of Novarica’s new report. “However, the inverse is true with reinsurance contracts: as the insurance products simplify, relationships between insurers and reinsurers become more complex. A simpler insurance product requires the reinsurance stage to handle more risk calculation.”
Key findings of the report include:
- 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 technology. Larger reinsurers are investigating AI and machine learning.
- Reinsurers are replacing core systems. Reinsurers are centralizing business and dealing with an increase in audits and regulation, rather than a drive for modern technology.
- Alternative capital is providing stability. Despite expectations that investors would flee at the first significant cat activity, most are recapitalizing. The availability of capital is a factor in subdued rate increases.
A preview of the brief is available online.
Summary
Facing pressures from a prolonged soft market followed by an erratic business cycle, 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 include:
- Recent market and financial trends.
- Active reinsurer landscape.
- Technology issues, priorities, and examples by functional area.
- Top technology priorities for 2019 and beyond.
Click here for the table of contents or to access the report.
About Novarica
Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and of more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.
Source: Novarica
Tags: analytics, Core Systems Modernization, Novarica, reinsurance, trends
