Reinsurance companies increasingly are funding InsurTech startups in order to structure more innovative products and improve their business efficiencies, but how much impact on the industry will these investments have?
Executive SummaryWith abundant reinsurance capacity in a competitive marketplace, some reinsurers are responding to these pressures by looking at technology as a way to structure more innovative products and improve business efficiencies—all with an aim to get closer to their clients and deliver more value.
There are a number of reasons reinsurers are getting involved in InsurTech, primarily to change the way re/insurance is distributed, priced, underwritten and administered, according to Mike Belfatti, chief operating officer at Greenlight Re. “We’re seeing interest in new technologies in insurance from all levels.”
“As capital sources for insurance risk continue to be abundant, reinsurers remain under pressure to justify their place in the value chain,” Belfatti told Carrier Management. “Some companies are responding by continuing to pursue scale; others are operating status quo. But some look at technology and innovation as a way to get closer to their clients and deliver value in a different way.”