After years of limited performance, a hardening reinsurance market presents a unique opportunity.
With the biggest reinsurance capital squeeze since 2008 currently underway, reduced capacity will increase reliance on fast, responsive, and accurate pricing as a key growth lever. Reinsurers that can successfully leverage this uncertainty and, in turn, price most effectively will be best placed to lead the market. Here's how hx Renew can help.
1. Real-time portfolio and analysis
With traditional solutions, underwriters, actuaries, and their executives are unable to consistently monitor rate change across the business due to pricing data not being readily available in a database for reporting and portfolio analysis. Many reinsurers spend as much as three weeks per quarter on manual data collection, amounting to the loss of valuable time and up to 100k per year. In addition, insurers are stuck relying on months-old information, unable to make essential business decisions based on real-time data.
hx Renew provides real-time rate change monitoring through automated dashboards which show technical and achieved prices in real-time, on an incident as well as portfolio level. Databases are created and updated automatically thanks to API integrations with MI tooling, enabling more effective risk selection and improved portfolio analysis.
2. Enhanced pricing agility
Making changes to models shouldn’t be painful. With Excel, initial updates may be quick (or not!), yet with no version control or governance around testing and approvals, reinsurers quickly find themselves having to choose between speed, data credibility, and quality governance. To better enable their underwriting teams, actuaries need to be able to refine models quickly, by themselves at no cost, and at a time that suits them, with version control and rigorous testing.
With hx Renew, actuaries and underwriters collaborate seamlessly, thanks to our agile, web-based SaaS platform enabling the development and refinement of pricing models at speed, automated batch-testing and ‘what-if’ analysis, plus automated regression testing for calculation errors. This can save insurers up to one month per year that would otherwise be spent correcting incorrect technical premiums created in other tools. Algorithm and rate changes can be made in days, not weeks, and customers achieve full compliance with regulatory standards with no IT and vendor costs.
3. Data-driven decision making
Reporting on pricing data for use by actuaries, underwriters, and executives is usually a highly manual process and often difficult, if not impossible, to deliver consistently across all lines of business.
With hx Renew, databases are automatically generated as you build models and are available in real-time through our APIs. This means that portfolio-level data is instantly accessible from the platform, ready to be summarised and analysed to drive business steering and decisions. This data can also be made available to underwriters at the point of pricing to enable more data-driven decisions.
Enriching pricing data is critical to future profitability and competitiveness. hx Renew enables easy data ingestion through API connections to external data sources and captures unstructured data through web scraping, enriching the data available for future pricing and eliminating the need for rekeying.
4. Regulatory compliance
In its 2023 priorities, the UK’s Prudential Regulatory Authority (PRA) announced that it will be taking a closer look at reinsurance risk. Although it is unclear what this will entail exactly, reinsurers can expect to need to comply with, and report on, new regulations.
Meeting new requirements can traditionally be an arduous and anxious exercise for reinsurers – with those failing to meet compliance facing legal and commercial ramifications. hx Renew is built to evolve to these ever-changing needs. Through built-in audit controls, compliance, and peer reviews, we help remove the difficulties around adhering to new regulatory landscapes and enable reinsurers to price confidently without worrying about legalities at every step of the way.