Igniting reinsurance program modernization

What’s on the line for insurance companies?

With potentially billions of dollars flowing through reinsurance contracts, there’s a lot on the line for insurance companies. So, it makes sense that an effective reinsurance administration program can be a critical component of an insurer’s success.

However, up until this point, there has been minimal investment in modernizing reinsurance administration. Many insurers continue to use outdated technology—such as spreadsheets—and manual processes to administer reinsurance contracts, potentially leading to errors, claims leakage, lack of insights, and slow deal implementation. In addition to accounting errors, manual or outdated processes could expose insurers to additional compliance risks, payment discrepancies, and reputational damage.

The liabilities created by these outdated approaches, along with other driving factors—increasing contract complexity, operating cost pressures, the importance of transparent financial reporting, and the need to refresh their reinsurance strategy—are motivating many insurers to begin or enhance the use of automation in their reinsurance systems.

Leveraging automation can allow insurers to enhance their transparency, controls, analytic capabilities, and speed to market; increase efficiency and accuracy; and reduce strain on internal resources.

In this report, we explore several steps and considerations to help insurance and reinsurance companies advance their modernization journey by conducting build-versus-buy analysis, selecting a vendor, and implementing a new reinsurance administration system.

How Deloitte can help

Setting off on a reinsurance transformation journey can be a daunting task—especially given the associated costs, resource requirements, and implementation timelines. However, with appropriate planning—and an experienced guide—the end results can drive increased controls and efficiencies and provide your organization with insights.

Deloitte’s reinsurance services are designed to improve the strategic alignment, performance efficiency, and effectiveness of reinsurance administration.