Half of reinsurers planning major IT investment

Over half of reinsurers are planning a major investment in IT over the next 18 months as technology becomes a vital tool in the quest for survival and success.

This is according to a survey by Xuber, Xchanging’s insurance software business, which issued its third and final chapter of results recently.

Over a third (35 percent) of respondents said their future IT investment was specifically to make them compliant with impending regulation. Only 52 percent of businesses believed they are currently compliant with upcoming regulation.

The survey also found that 35 percent of respondents are planning to invest to ensure their firm will be compliant with regulation.

Chris Baker, executive director of Xuber, said: “It is encouraging that the industry has grasped the fact that IT will be a vital tool in the battle for success and survival, and that the majority of executives we engaged with are planning a major IT investment. In its never-ending quest to leverage present day technologies, the reinsurance sector must not be afraid to consider 'next-generation' innovations.

“In underwriting, automation helps integrate pricing with exposure tools and can deliver consistent pre-bind application. Integrated workflows help co-ordinate better interaction with third parties and allow better management of retrocessions. Firms that effectively harness technologies and the opportunities they offer are destined to be among the industry winners, leading the way toward growth and prosperity.”