StoneRiver Survey Finds Reinsurance Administration Still Ripe for Automation
Columbia, SC, June 17, 2009 – StoneRiver, a leading provider of technology and strategic solutions for the insurance industry, announced results from its second annual survey of chief financial officers at U.S. property and casualty (P&C) insurance carriers about their experience with reinsurance administration. The goal of the survey was to learn industry trends for 2009 and early 2010, to track interests and to discover strategic direction when it comes to reinsurance administration.
Of the carriers that responded, 53 percent already use a ceding engine and 47 percent have a system that automatically identifies and attaches reinsurance per contract terms. However, while some companies have a ceding engine, or automation around the identification and calculation of reinsurance, they still manage reinsurer-level balances, billings, and cash on spreadsheets. In fact, 80 percent of the respondents rely on spreadsheets for reinsurance administration with only 13 percent utilizing an automated system. A system that is entirely automated dramatically reduces the likelihood of errors due to manual processes diminishing.
The hottest reinsurance issue cited is the lack of reinsurance automation. This is of interest, considering that every respondent reported that its company has a good sense of the status of reinsurance recoverables. It is possible that the concern comes from not having automation for aggregation in the event of a catastrophe. Another possible explanation could be that the respondents feel comfortable with the status of reinsurance recoverables, but face concern from others within their company about the lack of automation.
The complete results overview is available for download at www.stoneriver.com.
“Part of sound reinsurance administration includes consistent processes that produce accurate information,” commented Gary Sherne. president, Insurance Solutions, StoneRiver. “Automated systems can help ensure that carriers reach their objectives for dealing with clean data.”
StoneRiver offers the Freedom Reinsurance System for comprehensive ceded reinsurance processing and the Universal Reinsurance System (URS®), a single solution for both ceded and assumed reinsurance management.
About StoneRiver – Insurance Solutions
StoneRiver – Insurance Solutions delivers the industry’s widest range of technology solutions and services to insurance carriers, agents, and broker-dealers. This versatile product group encompasses front-office, policy, claim, rating, underwriting, billing, reinsurance, financial and compliance solutions for all major business lines.
About StoneRiver
Hundreds of insurers, thousands of agents and brokers, and tens of thousands of pharmacies rely on StoneRiver software and processing solutions to achieve a competitive edge. StoneRiver promotes client success by streamlining complex business processes. StoneRiver was formerly Fiserv Insurance Solutions.
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Additional Contact:
Lori Soppe, VP, public relations
StoneRiver
319-398-0548
lori.soppe@stoneriver.com
