To conclude our series on investment ideas for insurance companies for 2021, we will present some ideas for reinsurers.
Reinsurers have been under pressure to be flexible for some time. The need to invest in agility will continue in 2021. With many sectors of the insurance market under premium pressure from the emerging economic crisis, airlines can expect increased quotation volumes, pricing and potential for related premium reductions.
So how can reinsurers cope with the storm and come out stronger? We see four important games to think about.
Improving service solutions with partnership and automation: As operators appear to be more efficient and effective in their guarantee processes and brokers are looking for higher quotation volumes, the ability to quickly and efficiently deliver optional quotes will be a source of competitive advantages. Improvements to these services may include the development of connectivity to key platforms such as Duck Creek, Guidewire and Majesco to reduce insurers' data entry; and increased automation to enable faster decisions.
Real Estate Data Management : Reinsurance companies lead the insurance industry in assessing and managing large-scale real estate risk due to their strong risk management capability. The ongoing explosion of new data sources and features means that 2021 provides opportunities to improve your property data management even more. Leading carriers are moving to large data platforms that can store, clean and evaluate property data at the package, building and tenant level. This node structure enables the input of different types of data at different levels and that AI algorithms can be used to determine the most accurate information. Combining this with new flood, weather and other models can help carriers take their data management to the next level.
Build innovative platforms to seize new opportunities : One of the more interesting trends in reinsurance has been the growing desire to go beyond the traditional role of backstop for insurance companies. We are increasingly seeing reinsurance companies willing to back up start-ups or program key coverage. With new converging opportunities created by super services and included solutions that include insurance, innovation will only grow. Reinsurers will need innovative platforms that enable them to provide rating and pricing services to these groups to compete for these opportunities. have seen. A "buyer market" is threatening. If you have a good position to acquire, financial pressure can help lower your values and make certain goals more attractive. So consider whether acquisitions should be part of your 2021 strategy.
We hope this series has given you some investment ideas to keep in mind when planning for 2021. As 2020 has repeatedly shown, change is inevitable. The winners will be the ones who can best adapt.
And of course if you need a partner to think through or reach your goals, we'd love to hear from you.
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