Reinsurers Prioritizing Data and Analytics Investments to Counter Emerging Risks

While juggling legacy issues with emerging hazards, reinsurers are focusing on BI, data analytics, and specialized components as core to their business: Novarica

Boston, MA (Jan. 26, 2021) – As the reinsurance market continues to operate through an erratic business cycle following a prolonged soft market, reinsurers are focusing on technology strategies that include critical investments in business intelligence and modeling. 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, and several examples of recent technology investments by reinsurers.

“Improving modeling starts with improving data quality and depth,” said Mitch Wein, Senior Vice President of Research and Consulting, and co-author of Novarica’s new report. “As new options for third-party data are becoming available that aggregate public and semi-public data from social media sites and government records, reinsurers are demanding accurate data from primary insurers, focusing on data cleansing, and continuing to use sophisticated analytical tools to find new opportunities to create competitive advantage.”

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.

Click here for the table of contents or to access the report.

Report Summary

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.

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. Its research covers trends, best practices, and vendors, leveraging relationships with more than 300 insurer CIO members of its Research Council. Its advisory services provide enterprise phone and email consultations on any topic for a fixed annual fee. Consulting services range from assessments and strategic roadmaps to vendor evaluations. For more information, visit www.novarica.com.

Source: Novarica

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