In an increasingly complex geopolitical environment, James Mahon of DXC Technology, a global technology services provider, urges a shift away from manual processes and fragmented systems towards a modern, automated reinsurance platform, enabling re/insurers to maintain control, respond more quickly to change, and compete in a volatile market.
In an interview with Reinsurance News, James Mahon, Reinsurance Pre-Sales Lead at DXC Technology, said geopolitical instability is dominating the reinsurance agenda, with ongoing conflicts and escalating tensions—most notably in the Middle East—driving uncertainty across global markets.
He highlighted that this growing complexity is already evident in sanctions compliance, cross-border transactions and counterparty risk, as well as heightened cyber risk linked to geopolitical activity.
Mahon explained, “Recent geopolitical developments have introduced greater volatility across reinsurance portfolios, requiring faster responses to changing risk profiles. Exposures can shift quickly as conflicts evolve, supply chains are disrupted and regional risks are reassessed. This often requires adjustments to treaty structures and participation across the reinsurance chain.
“At the same time, increased claims activity across lines such as political risk, aviation, marine and cyber is placing additional pressure on reinsurance teams to calculate, track and recover amounts from multiple counterparties, often across layered programmes involving several reinsurers, brokers and jurisdictions.”
He warned that organisations still reliant on manual processes and fragmented systems will struggle to keep pace in an environment where speed, accuracy and control are critical. Disconnected data slows decision-making, while operational bottlenecks reduce agility and increase the risk of errors, delayed recoveries and claims leakage.
He added, “Geopolitical tensions also introduce further complexity through evolving sanctions regimes, cross-border payment restrictions and heightened regulatory scrutiny, with closer enforcement around sanctions screening and reporting.
Mahon stressed that ensuring transactions, partners and recoveries remain compliant requires timely access to accurate data, which is difficult to achieve across multiple systems.
“In addition, counterparty stability can shift quickly, with changes in creditworthiness and financial strength – for example following regional financial stress or sovereign rating pressure – requiring continuous monitoring and rapid response. Credit control activities are no longer periodic checks, but an ongoing operational requirement.
“Without a consistent view across the reinsurance chain, maintaining this level of oversight becomes increasingly difficult, exposing (re)insurers to compliance breaches, misdirected payments, or delayed recoveries due to outdated counterparty or sanctions data. In a market where both speed and accuracy are essential, these operational limitations can have financial and reputational consequences,” he said.
Mahon emphasised that addressing these challenges requires a shift towards a modern reinsurance administration solution that brings contracts, claims and accounting into a single, controlled environment.
He said, “With consistent, reliable data across the lifecycle, (re)insurers can quickly identify which treaties and exposures are impacted by geopolitical developments and act without relying on manual reconciliation across multiple sources. Complex calculations, recoveries and accounting entries can be handled in a structured, repeatable way. This reduces delays and limits the risk of errors when volumes and complexity increase.
“Stronger process control is also critical across compliance and counterparty management. A streamlined platform enables access to up-to-date sanctions and credit data, allowing (re)insurers to monitor partners and transactions as conditions change, rather than relying on periodic checks. Defined workflows ensure that payments and recoveries follow the correct processes, even as restrictions evolve, while maintaining consistency across teams and systems.
“A clear audit trail across all activity supports governance and regulatory reporting without additional manual effort. With reliable data and structured processes in place, reinsurance teams can focus on interpreting contract terms, managing risk and making timely decisions as market conditions change.”
Mahon added that geopolitical uncertainty is likely to remain a defining feature of the reinsurance landscape, noting that while the external environment cannot be controlled, the ability to respond effectively can.
“(Re)insurers that continue to rely on manual processes will find it increasingly difficult to manage this level of complexity. Those that invest in a modern, automated reinsurance platform will be better positioned to maintain control, respond to change and compete in a more volatile market,” he concluded.
