Is your old technology driving up reinsurance costs?

The cost of reinsurance contracts is increasing. Contributing macro factors include political conflict, larger and more frequent natural disasters, supply chain constraints and inflation. Come renewal time, insurers are feeling the pinch in the pocket.  

Controlling the financial impact of these macro factors is largely out of the hands of insurers. However, there are other contributing factors within their control that are also driving up reinsurance costs or restricting contract terms.

One of the biggest contributors to increased reinsurance costs or restricted contract terms is antiquated reinsurance management systems and methods. Despite advancements in insurance technology, many insurers still rely on manual processes, spreadsheets or outdated legacy systems to manage their reinsurance contracts.

This blog explores how these antiquated systems and methods can significantly add to an insurer’s overall cost burden, while limiting their ability to receive more favourable terms from their reinsurers.