Reinsurers to benefit from digital transformation
Thursday, 11 01 2018, Category: Insurance and Reinsurance, Country: World
Reinsurance companies are positioned well to benefit from the potential disruption caused by the rise of digital technologies, according to analysts at J.P. Morgan.
Digital technology is advancing rapidly and increasingly looking to disrupt the global insurance and reinsurance sector. As a result, both insurers and reinsurers stand to potentially gain from improved efficiency and lower costs in various parts of the value chain, but according to J.P. Morgan, it could be the reinsurers that are best placed to reap the rewards.
“This is because they have fewer potential conflicts of interest than primary insurers – they have no insurance agents. Also the reinsurers’ legacy systems traditionally are also much less costly than those of primary insurers, so it is less costly for reinsurers to adapt their systems to the new technology,” say analysts.