Having first-class technology is “business-critical” for Bermudian reinsurers and essential to remaining competitive in the years to come, according to a survey by Xuber.
Almost a fifth (19 percent) of the executives surveyed identified technology as their top business priority in 2015, followed by searching for attractive yields and results (12 percent) and talent (11.5 percent).
Almost half (46 percent) of respondents said analytics enables 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.
Furthermore, the executives surveyed by Xuber agreed that both analytics and big data are likely to be of growing importance for their future success.
Chris Baker, managing director of Xuber, commented: “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.”
Of those surveyed, 73 percent identified Bermuda’s 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.
Concerns for those surveyed was the impact of alternative capital from insurance-linked securities, such as catastrophe bonds, and the way in which the market is responding to regulatory changes, such as Solvency II.
