Exploring
Reinsurtech
Key Insights from the 2023 CII Panel
The reinsurance industry is currently witnessing a transformation driven
by emerging reinsurance technology, also known as ‘reinsurtech’.
The 2023 Insurance Institute of London CII panel
discussion explores key ideas and recommendations put forth by industry
experts, highlighting the impact of reinsurtech on the future of
reinsurance.
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2023 Panellists
Catrin Shi
Chief of Insider Publishing Group
Jerad Leigh
Co-Founder & CEO of Supercede
Colette Karakashian
Director of Product Management at Verisk
Julien Victor
Managing Director of Reinsurance at Duck Creek Technologies
Key Learnings & Insights
Embrace technology to stay competitive:
Reinsurtech is becoming increasingly vital for reinsurance participants
to remain competitive through better efficiency, cost reduction, and
enhanced risk assessment.
Prioritise data quality and standardisation:
Greater analytics lead to better insights which lead to better
decision-making, meaning faster responsiveness to changing market
conditions.
Adopt a “buy, don’t build” approach to technology:
Companies can quickly realise benefits while minimising the risks and
costs associated with in-house solutions, including development,
maintenance, and wide-adoption.
Address cybersecurity and privacy concerns:
Selecting reinsurtech companies that adhere to robust security measures
ensure compliance with relevant regulations, offloading internal
cybersecurity and data privacy concerns.
Advantages of a Reinsurtech Ecosystem
Reinsurtech can streamline data exchange and promote industry standards,
addressing the lack of standardisation and interoperability between
different data systems.
Previous whitepapers have assessed digital ecosystems and their importance
to the reinsurance industry.
Adopting modern SaaS (Software as a Service) solutions provides
scalability, flexibility, cost savings, access to cutting-edge technology,
and easier integration with existing systems.
Automating manual admin greatly increases efficiency, helps to reduce
errors, and improves data processing speed, enabling faster-to-market
access.
We’re finding that our clients are able to shave off up to 80 percent off
the time it takes to prepare the outwards data that they need to take into
the market.
Jerad Leigh, Supercede
Data & Decision-Making
Artificial intelligence that can analyse large amounts of underlying data
help practitioners identify patterns and trends that may not be apparent
through manual analysis.
A single-source-of-truth for the reinsurance value chain offers better
communication and collaboration for cedents, brokers, and reinsurers,
allowing work on deals in real-time.
Analytics enhance risk assessment, facilitating greater insight into risk
factors, better predictions of potential losses, greater pricing accuracy
of reinsurance policies, and more effective risk mitigation strategies.
How do we take the analytics we’ve got and really supersize them and bring
them into the 21st century with respect to speed, turnaround, and
efficiency to market.
Colette Karakashian, Verisk
Challenges to Reinsurtech Adoption
Key challenges include 1) existing data quality and standardisation, 2)
legacy systems, 3) resistance to change, and 4) cybersecurity and privacy
concerns.
To fully realise the benefits of modern technology, reinsurers should
collaborate with startups, foster a culture of innovation, participate in
industry forums and events, and invest in talent and education.
Reinsurers must invest in improving data quality, integrating new
technologies, ensuring robust cybersecurity measures, and complying with
data protection regulations.
It’s more about making sure the reinsurers purchase the right technology
and encourage entrepreneurs to bring that technology to the market rather
than trying to do it themselves.
Julien Victor, Duck Creek Technologies
The Future of Reinsurtech
Continued growth and investment
The reinsurtech sector is expected to continue its rapid growth, with
increasing levels of investment from both traditional reinsurance
companies and venture capital firms. This will drive further innovation
and the development of new products and services tailored to the unique
needs of the reinsurance industry.
Increasing regulatory scrutiny
As reinsurtech continues to evolve, it is likely to attract greater
regulatory attention, with an increased focus on issues such as data
privacy, cybersecurity, and consumer protection. Reinsurers must be
prepared to adapt to new regulatory requirements and work closely with
regulators to ensure that innovation can continue to flourish while
addressing any potential risks.
The rise of AI and machine learning
Artificial intelligence and machine learning will play an increasingly
important role in reinsurtech, enabling more sophisticated risk
assessment, pricing, and claims management capabilities. This will
require the industry to invest in the necessary skills and
infrastructure to effectively harness these technologies.
Greater focus on sustainability and climate change
Reinsurers will need to develop new products and services that address
the evolving risks associated with extreme weather events and other
climate-related challenges. Reinsurtech solutions can play a key role in
enabling reinsurers to better understand and manage these emerging
risks.
