Technology is the number one priority for Bermudian reinsurers if they are to remain competitive in the years to come.
This is according to the latest research report from Xuber, Xchanging’s global insurance software business, which added Bermudian reinsurers believe that having first-class technology is “business-critical.”
The research highlights 2015 business priorities for those operating in the Bermudian reinsurance market, as well as how the current environment is changing.
Almost a fifth (19 percent) of executives identified technology as their top business priority in 2015, followed by searching for attractive yields and results (12 percent) and talent (11.5 percent).
The research reported that almost half (46 percent) of respondents said analytics enable them to provide underwriting assistance to insurers, and over a third (38 percent) said they are executing a big data programme – highlighting the central role of technology within the market.
Nearly three-quarters (73 percent) identified the regulatory and political framework in the region as a draw for businesses, as well as the market’s leading position in the field of insurance-linked securities.
Chris Baker, managing director of Xuber, said: “Our research has uncovered some fascinating insights. Despite the many challenges faced by the reinsurance industry, including an ongoing soft market, the pressure of alternative capital, mergers and acquisitions, and impending regulatory reform in the form of equivalency with the EU’s Solvency II regime, the survey results show Bermuda is as adaptive and forward-thinking as it has ever been.
“This market has always been renowned for its innovation, particularly the development of new and smarter risk management products. As such, the dynamics of the Bermudian reinsurance market are changing and reshaping the way reinsurers do business, as well as influencing future business priorities.
“Executives can see that investing in technology will give them the best possible chance to emerge from these challenging conditions in healthy shape. In recognition of this, and to support the local assumed reinsurance market, we recently strengthened our position in the region with an enhanced product offering.
“Xuber for Reinsurers provides a suite tailored to the complex Bermudian reinsurance market, with a platform designed to allow users to work across different time zones, currencies and languages, enhancing their ability to compete on a global basis.”
Xuber, Xchanging, Bermuda, Chris Baker