Data control: the key to costs?

Markets may be starting to think that the marketplace knowledge which brokers bring to them can be replaced with data analytics and use of models, but is this fair, asks Frank Fortunato of CATEX.

Reinsurers have struggled with lowered premiums and diminished investment yields. Carriers have underscored the importance of maintaining underwriting discipline and many have moved closer to the risk via managing general agents or outright primary insurance plays. These moves may still not be enough to generate improved returns as we’ve seen recent complaints from markets about high ‘distribution costs’ and, specifically, broker remuneration.