Reinsurance Sales Engineer
Product Management, Reinsurance & Collections
If you’re a reinsurer reading the insurance news, things might seem a bit bleak. Consider this from a recent Reuters article:
“* Reinsurance prices down 5-10 pct in Jan renewals-brokers
* Weak pricing power to remain a challenge in 2011
* Analysts see low single-digit decline
The world’s top three insurance brokers saw declines of 5-10 percent in the prices reinsurers were able to charge insurance companies for new risk contracts.”
If I’m a ceding company underwriter reading this, things look a bit different. I see an opportunity to obtain better pricing on my treaties. I also know that I’ll need the right data, properly presented, to secure better rates.
It seems obvious that an automated reinsurance system can be invaluable to an underwriter when it comes to negotiating renewals, especially in a market described above!
A strong reinsurance system:
• Aggregates all your reinsurance data from various front end sources
• Automatically identifies and calculates your cession
• Stores the calculated values in one centralized repository and
• Gives you the ability to run ad-hoc queries and reports on gross, ceded, assumed and net numbers.
With StoneRiver’s URS reinsurance system, all relevant data is accessible, and features that enable “what if analysis” and treaty modeling are included. Underwriting and Accident Year experience for underwriting years can be derived. Data can be modeled against changes to existing programs, giving the underwriter the ability to easily plug and play with “what-if” changes to treaty terms and conditions, and to analyze the results. The results can be very useful in contract renegotiations.
If I were an underwriter in charge of negotiating my company’s treaties, I would want these capabilities. I’d have to believe that having automation would help me tremendously in putting together my proposals.
What do you think?
You can read the Reuters article at http://www.reuters.com/article/idUSLDE7030O920110104.