Reinsurance: Supercede Spots The Potential Savings

Reinsurance tech firm Supercede reveals huge (re)insurance industry savings achievable, following research into the efficacy of its technology during live pilots with leading insurers, in the fast-track preparation of large, complex reinsurance submission packs.

Every year, major insurers (cedents) face the mammoth task of ensuring that their reinsurance submissions get out to market accurately and on time. This requires the collation, cleansing, and management of vast amounts of complex submissions data – a time- and resource-consuming process that means data cuts have to occur months before treaty renewal.

This year will be even more complex, due to many reinsurers’ reduced appetite to provide capacity for low-layer attritional risks, while at the same time cedents have an increased desire to acquire larger limits on their programmes. This will result in more frequent and drastic changes in treaty structures for 2023 renewals. This in turn will create significantly more work for cedents not using Supercede’s technology.

For the research Supercede collated and analysed treaty reinsurance activity information with leading ceding insurers that revealed an average 100 hours per treaty could be saved by utilising Supercede’s technology. Assuming the average cedent has nine bespoke treaty renewals, this extrapolates to an incredible 5.4m hours saved across the entire industry, or $300m in labour costs.

CHECKING AND VALIDATING COSTS TIME

The research highlighted 85% reduction in the internal time spent collating and validating risk information between ceded re teams and their underwriting, claims, accounting and finance colleagues, and a 20% reduction overall administration costs relating to their reinsurance programme purchase. Submission packs were created in a few days, with actuarial quality data, not many weeks as is currently the norm.

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), said: “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.”

About alastair walker 10148 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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