Reinsurance In The Insurance Business: Does It Require Automatization?
In today’s insurance and reinsurance market,
information technology is the driving force that allows insurance companies to
interact with increasingly demanding and impatient customers successfully.
However, according to Simon
Mosheshvili, a sophisticated entrepreneur with a prestigious degree in the
field of information technology, consumers, who are well versed in
technological innovations and actively use them in everyday life, expect a
corresponding technical level of service from insurers.
Besides, although the insurance
market, for example in the United States and several other economically
advanced countries, has long been formed, this area of financial activity still
faces a host of problems:
- the need for operational analysis of the effectiveness of different
types of insurance;
- the need for rapid assessment of the company’s financial condition for
investment;
- the complexity of calculating insurance rates and developing appropriate
methods;
- reinsurance: calculations of the partner’s share in premiums and reimbursements and analysis of the effectiveness of working with a particular partner.
The only way to solve all these
problems simultaneously is to automatize the process fully, which requires an arsenal
of superior knowledge in the field of computerization. For this purpose, Simon Mosheshvili recommends the IT engineering company Digital Edge that specializes in delivering a realm of IT solutions, including automation of the
processes in the insurance business.
Automatization of insurance and reinsurance processes
Automatized information technologies
are aimed at implementing systems that cover all the critical elements of the
technological process and guarantee complete data security at all stages of
information processing. The implementation of a computerized information system
implies automatizing the solution to financial, accounting, and other
activities issues. Full insurance technology provides processing of large and
interconnected arrays of data:
- insurance and reinsurance
contracts;
- insurance policies;
- brokerage agreements;
- payment orders, etc.
The transition to computerized
information technologies is accompanied by a change in the nature and quality
of management. The analytical work of managers becomes the main one. It turns
information into one of the most significant and accessible resources of the enterprise.
What Is Reinsurance?
The Definition of the Concept
Reinsurance represents
a system of unique relations between several insurers under the excess risk
insurance item. When an insurer undertakes risk hedging that exceeds their
capabilities, the risk share is transferred to another insurer, which, in
turn, pledges to fully pay the assumed share of risks when an insured event
occurs. Organizations that participate in reinsurance are referred to as reinsured
and reinsurer, respectively.
Reinsurance is a reasonably frequent
phenomenon in the insurance
industry. Simon Mosheshvili believes that its automatization will
facilitate the work of both individual insurance agencies and the global insurance
market.
