By: Cesilia Faustina
Many broker companies are looking for new solutions in trying to fulfil customer demands. Brokers are now looking for a more connected experience amongst brokers, customers and reinsurers. This need is leading to a digital ecosystem amongst the reinsurance brokerage industry where workflow operations can be conducted on a much more productive level.
The reinsurance market is valued at 254.9 billion USD in 2018 and is expected to reach 299.500 billion USD by the end of 2024, according to the Market Study Report. As we can see, the reinsurance industry is most likely not going to slow down and more brokers are looking to enhance their process.
Continued investment in technology
With the rising growth of the reinsurance brokers market, it is no surprise to see that technological advancement continues to be a powerful element to look out for. More brokers are now investing in different software and tech companies to help them with business operations.
The birth of reinsurance broker management systems (RI-BMS) is now becoming a huge thing and this is affecting the way reinsurer brokers are getting their tasks done. As many insurance companies are going digital, we are witnessing all aspects of the insurance industry following suit.
If the whole insurance industry is going through digital transformation, we are surely seeing one for reinsurance. More and more brokerage companies are taking advantage of a digital system to get the job done. This is done by adopting RI-BMS, where all data and information will be able to be digitally transferred and updated from one another; increasing efficiency and productive time management.
Good data, analytics and pipeline management tools
According to a report by Moody’s Investor Service, it noted brokers generally rely on good data, analytics and pipeline management tools to retain clients. As mentioned earlier about digital data in order to increase productivity and efficiency, we can see here that such BMS can play a great role in trying to sustain clients’ needs.
By providing a digital database of client information and services, it can simplify any process of reporting and analysis needed to improve customer satisfaction. A reinsurance broker management system will have all data available in a single platform that allows for any automated reporting and data management.
Such a system thus not only can help with the need for data processing but also with providing sustainable efficiency. On top of that, having all the information documented and tracked can definitely help with any handover and recovery purposes. Generally, having digital storage for your data is definitely a plus.
Increasing the efficient underwriting process
One of the main key drivers of success in reinsurance is the performance of underwriting processing. This point, unfortunately, is supported by low-grade technology and manual processing. With all this talk of digitalization, we are also seeing this implementation towards the underwriting side of reinsurance.
This is especially important because aside from helping with cost-efficiency, there is plenty of up-side that can be accomplished with the help of a more efficient, digitally enabled, analytically driven platform; one of which includes the underwriting process.
If you have solid processing of underwriting, then customers are going to trust you more. Through the use of digital platforms, we are witnessing greater and more efficient ways of getting underwriting tasks in order, such as the use of mobile technologies. These methods can surely help in reducing manual errors and providing more accurate results.
The lack of an efficient system
Though we are seeing constant investment in technology, especially for leading reinsurance organizations, real-time analysis shows this is not the case for many reinsurers. Many still lack efficient systems to achieve a sustainable pipeline for success.
Not enough organizations are implementing digitalization to the fullest as well. Many are moving towards it; however, many are not yet implementing the right system or even an efficient RI-broker management system. Many are still in the development stage and need to step up their game.
The reinsurance world is heading towards a more digital scope and though real-time implementation is not fully there yet, we are witnessing a digital change for the industry and it is only smart to follow the emerging trends.