Collaboration in Claims: Enhancing Communication between Insurers and Reinsurers

Smooth communication between reinsurers and their clients is crucial for several reasons. Effective communication fosters transparency, which helps when considering the all-important concept of trust, a vital ingredient to any longstanding relationship between a reinsurer and their clients. Additionally, timely and accurate exchange of information enables reinsurers to assess and manage risks more effectively. This is particularly important in the dynamic insurance industry where market conditions, regulations and risk profiles can change rapidly.

The Insurer explains “reinsurers need to communicate their strategies and risk management approaches clearly to their clients and brokers. At the same time, clients and brokers should provide timely and accurate data and insights to help reinsurers better understand and price the risks they are underwriting.”

Thus, we find ourselves in a position where digitisation of certain up and downstream processes involving clients, and a need for data-driven information exchange, suddenly becomes very useful indeed.?

In this article, I want to discuss further the benefits of digitisation for reinsurance client relationships.?

Smoother renewals process

Did you know, according to Send , 60% of re/insurance processes are carried out via spreadsheets??

Spreadsheets are one of the most used tools for many reinsurers. However, most do not utilise the ability of their insurance system to handle structured data, a critical error in a time when unstructured data is becoming time-consuming and lacks value.?

Not only is it time-consuming for employees to deal with unstructured data on spreadsheets but it also leaves reinsurance companies missing a trick. You see, in the increasingly volatile risk environment of the modern age, companies will need to do more than passive risk management. By utilising digital systems made for structured data and gathering insights, reinsurers set themselves up to better identify, mitigate and also monitor risk. Indeed, a highly valuable ability for reinsurers and their clients alike, especially when it comes to maintaining relationships and smoothing out the renewals process.?

A surge in reinsurtech

It appears the adoption of technology for operational efficiency and greater communicative ability between reinsurers and their clients is not a new discovery.?

@Jerad Leigh has written a brilliant piece here on LinkedIn all about the rise of reinsurtech and its impact on the industry, now and in the future.?

It's true that whilst they work closely, the insurance and reinsurance sectors require quite different digital solutions. Hence, reinsurtech. It is up and coming. And its future is looking bright.?

Jerad mentions some of the benefits which I will relay here as I completely agree:?

1) Reinsurers can be more agile and responsive to risk and also their clients.

2) Faster turnaround times for renewals and contracts are made possible.

3) Better collaboration and client discussions can take place.

Whilst all three benefits are desirable they also have one key thing in common - they work to improve the communicative abilities of the reinsurer and their clients. A win-win-win in my books.?

Recommendations from a reinsurance consultant

I wanted to end on some points of action as it is within my philosophy to try and speak less of the ‘what’ and more of the ‘how’.?

To choose a platform and processes which will work for your company, I would start by focusing on three core areas: compatibility, compliance and scalability.

To be compatible, you want the digital platform you choose to integrate smoothly with existing systems and technologies to ensure minimal disruption to ongoing operations.?

For compliance, you'll need a platform that aligns with regulatory requirements. In my professional opinion, I would be pointing you in the direction of the Accord Standards as they are highly professional and global.?

With compatibility and compliance under your belt, scalability should be inevitable. The chosen platform should be able to accommodate a growing volume of data, integrations and users. It goes without saying that your new system should be able to accommodate, and support the formation of, structured data.?

I'm highly passionate about making digitisation work for reinsurers and would love to hear from you if you have any queries or want to work with me.?

Alternatively, I have recently released a detailed report which acts as a starting point for any reinsurer looking to digitise and automate their claims processes.?

?? Interested? Access it by clicking the link below!?

https://www.buondrius.com/report

Originally posted on https://www.buondrius.com/