Reinsurance Administration Platforms: A Market Glance — Key Reinsurance Trends, Technology Outlook, and Case Studies

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Abstract

This IDC Tech Buyer Presentation provides an overview of the market for passive reinsurance administration software, an application area gaining popularity due to its capacity to foster operational efficiency, claim leakage prevention, and improve knowledge sharing among the various departments of the organization about net reinsurance exposure, virtuously inform underwriting and distribution.

We are moving closer to a hard market phase as the era of quantitative easing has come to an end. Reinsurers will avoid growth initiatives as they are currently in "all hands on deck" mode for operational effectiveness and risk control. The complexity of reinsurance agreements is increasing, which works against the simplification of many insurance products being redesigned for multichannel sales. Given the importance of managing and optimizing reinsurance coverage, we predict that there will be a need to modernize reinsurance solutions. Reinsurance systems are still operating on legacy platforms using COBOL on a mainframe, or they are wholly manual processes based on individual programs, unlike many other fundamental insurance system areas. In today's fast-paced, more complex environment, reinsurance management must be successfully carried out using software to ensure accuracy. Therefore, it is advised that the capabilities of the reinsurance administration function be increased significantly in the future. Businesses that stick with traditional methods will likely face greater operating costs as well as a potential strategic disadvantage due to their inability to utilize this important instrument for managing capital efficiency.

Following a brief discussion of market trends, this presentation will delve into the of technology by introducing all the components of a contemporary cedent's reinsurance framework: a single-pane-of-glass technology for streamlining and automating all reinsurance operations with flexibility, power, and accuracy. We then go deeper into the technological enablers, significant modern applications, and business outcomes for reinsurance management. The presentation will conclude by introducing solution providers in the market and their key selling points.

This presentation covers the following sections:

• 2023 market outlook for global reinsurance
• Global technology outlook: The case for a reinsurance management system "renaissance"
• Passive reinsurance framework: Technology enablers, business outcomes, and use cases
• Decision points and wrap-up

Coverage