News

 

digital

One insurance sector that’s strongly resisted digitalization until now is ceded reinsurance. But with a variety of software for reinsurance claims management increasingly available, that may be changing.

Still, challenges remain. One is the common practice of tracking reinsurance claims manually, using spreadsheets. Inevitably, this leads to some claims getting lost in the shuffle.

Another is the familiar “hours clause,” which limits a single claims incident to a duration of 72 hours. Incidents that last longer than 72 hours require setting up separate instances.

To maximize their reinsurance recoverables, Grégory Moliner, CEO of Effisoft USA, a reinsurance software developer, says insurers should deploy a ceded reinsurance system with an algorithm designed to optimize such claims.

To help insurers navigate the complexities involved in implementing such as system, Moliner makes the following recommendations:

Map out the reinsurance process. The usefulness of reinsurance systems “depends on how tightly it’s integrated with core policy administration and claims systems,” notes Moliner, who advises conducting a preliminary study before installing the software. “

The study should include a detailed description of the company’s reinsurance management processes and identification of potential gaps between those processes and the proposed solution,” he states. In addition, “The study should also identify the contracts and financial data needed, establish interface specifications, define the data conversion and migration strategy and gather all reporting requirements.”

Map the core systems to which the reinsurance system should connect. “The ceded reinsurance data will need to be integrated with other applications, such as the general ledger, the claims system and business intelligence tools,” Moliner explains.
Automate as much as possible. While many insurers are still making do with manual reinsurance processes, automation, Moliner asserts, will become a necessity as catastrophe reinsurance becomes more widespread and complex.

https://www.dig-in.com/opinion/reinsurers-still-face-challenges-digitalizing-claims

Tags: WebXLceded reinsurancelossesreinsurance2017

26.06.2018

Supporting ACORD Standards is Crucial, European Reinsurance and IT Professionals Say at French Conference

Effisoft’s Julien Victor says cloud solutions are impacting reinsurance management systems.

Read more

15.06.2018

Insurance Innovation Reporter interviewed Effisoft at IASA 2018

Read Grégory Moliner's interview regarding reinsurance systems by IIR as part of their discussions

Read more