Tech could save cedants millions on submissions

For the research, Supercede collated and analysed treaty reinsurance activity information with leading ceding insurers. It claims that 100 hours per treaty could be saved.

“Every year, insurers (cedants) 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,” the company said.

“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 cedants 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 cedants.”

The research suggested a potential 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.

Jerad Leigh, 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.”