New report provides an overview of reinsurers’ business and technology issues, and examples of recent technology investments made by reinsurers
Despite years of soft market conditions followed by sharp hardening periods, tremendous losses from man-made and natural catastrophes, as well as open-ended liabilities, reinsurers are investing in business intelligence (BI), data analytics, and specialized components (such as modeling tools) to control their risk. In a new Impact Report, Business and Technology Trends: Reinsurance, research and advisory firm Aite-Novarica Group provides an overview of reinsurers’ business and technology issues, data about the marketplace, and examples of recent technology investments made by reinsurers.
“Pressure from competitors means moving from Excel-based analysis to more sophisticated technologies,” said Steve Kaye, Head of Knowledge Management at Aite-Novarica Group. “Larger reinsurers are investigating AI and machine learning.”
“AI and machine learning also have a role to play alongside traditional analytics in optimizing analytics models, placement of business, and loss mitigation or prevention on behalf of primary insurers,” adds Jeff Goldberg, Head of Insurance Insights & Advisory at Aite-Novarica Group and co-author of the new report. “Reinsurers should continue to leverage data from primary insurers and other sources to derive insights for primary insurer clients, optimize their portfolios, and improve their regulatory compliance.”
About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.