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INTX CEO says reinsurance workflows still rely on fragmented tools
More than 70% of insurers still use Excel or homegrown systems for critical reinsurance processes, and more than half of policy workflows require manual intervention, INTX CEO Rob Lewis said.
Reinsurance operations still face costly inefficiencies due to fragmented systems and manual workflows, INTX Insurance Software CEO Rob Lewis said in an interview with Reinsurance News.
Lewis argued that while reinsurance is increasingly a key lever for capital efficiency, growth and profitability, technology has not kept pace. He said more than 70% of insurers rely on Excel spreadsheets or homegrown systems for critical processes, and that over half of policy workflows require manual intervention.
He also put a wider value-at-risk estimate on these frictions, saying that when organizations examine the full economics of reinsurance program structuring, treaty execution, facultative placements and accounting accuracy, the value at risk can expand to 3.0% to 8.0% or more of ceded premium.
Lewis warned that the impact can scale quickly by exposing “trapped” capital, delaying decision-making and reducing underwriting capacity. He said a carrier ceding $500 million in premium may lose $15 million to $40 million annually, and that at $1 billion the annual impact could rise to as much as $80 million.