Reinsurance tech firm Supercede shows that $300 million per annum re/insurance industry savings are possible, following research into the efficacy of its technology during live pilots with leading insurers.
Each year, cedents are faced with the challenging task of ensuring that their reinsurance submissions get out to market accurately and on time.
However, this year will provide even more challenges due to many reinsurers’ reduced appetite to provide capacity for low-layer attritional risks. Therefore, this will result in more frequent and drastic changes in treaty structures for the 2023 renewals, which in turn will create significantly more work for cedents that are not using Supercede’s technology.
Whilst carrying out the research, Supercede collated and analysed treaty reinsurance activity information with leading ceding insurers, that revealed an average 100 hours per treaty could potentially be saved by utilising Supercede’s technology.
Furthermore, the research also highlighted an 85% reduction in the internal time spent collating and validating risk information between ceded re teams and their underwriting, claims, accounting and finance colleagues, as well as a 20% reduction overall administration costs relating to their reinsurance programme purchase.
Jerad Leigh, Co-Founder & CEO of Supercede, said: “Even we, at Supercede, were stunned at the sheer scale of the efficiencies and savings our technology can bring to the (re)insurance sector. In fact, these savings may be on the low side, as current market conditions will necessitate many cedents restructuring their reinsurance programmes, which involves much additional, costly, manual work.
“Challenging market conditions, will increase the burden on cedents to provide updated profile and underlying risk information, closer to the 1 January 2023 renewal deadline. This increased burden will result in greater savings achieved by Supercede clients in 2023 compared with 2022.”
Greg Waide, Head of Reinsurance at Ascot (one of the surveyed businesses), added: “Supercede was very good at organising and managing our submission data. Having one workspace for our packs, which we can handily share with our brokers, makes it very easy to get everything sent off in time. Furthermore, we can now log all submission data, giving management a valuable year-on-year overview.”
