The reinsurance sector is experiencing many of the same trends as general and commercial insurance – increased digitisation in response to the pandemic, economic uncertainty, and a rise in frequency and severity of large-scale catastrophe events. In this climate, however, reinsurers can position themselves to take advantage of insurers’ lower risk appetites as they seek to mitigate against catastrophic losses.
Capco’s global team of reinsurance specialists is well-placed to support reinsurers across all markets to maximise the value of their data, drive fast-paced transformation, embed technological change, and realise the potential for high growth.
Data and analytics is a critical capability across the insurance industry. We are seeing catastrophe events such as natural disasters occurring more frequently and with more severity than existing models predict. At the same time, other types of non-physical peril are becoming more significant, and pricing mechanisms for newer lines of business such as cyber and non-damage business interruption continue to evolve. In both instances there is a need for continued improvement of data and analytics capabilities to enable accurate pricing and predictions.
Our team of experts can support re-insurers with defining data governance, managing data, developing new architectures to build foundational capabilities, and engineering to implement effective data and analytics solutions.
The reinsurance market is facing significant structural changes. A combination of merger, acquisition and market exits is resulting in an environment of fewer, larger reinsurers. Key players can now hold significant shares of the reinsurance market and achieve economies of scale but to do so successfully, must overcome the challenges faced by large complex organisations and optimise their technology, systems, and processes.
Capco teams are well-placed to bring their knowledge of the insurance domain and their technology and data expertise to help our clients across their end-to-end transformation journey, from developing a future-proof architecture design, to integrating systems, and driving process improvement.
Following a lack of investment in automating the administration behind reinsurance, reinsurers now recognise automation as an important tool to improve risk management, reduce operational timelines and costs and drive customer value. Leveraging automation relies on a foundation of appropriate technology vendor selection and implementation and may include integration with third party platforms.
We partner with reinsurers to ensure successful transformation, from advising at the strategic planning phase, to project managing change and implementation activity and best practice testing. Our insurance automation colleagues partner with client teams to define new operating processes and transfer knowledge to ensure success for the future.