Ceded Property and Casualty Reinsurance Solution Spectrum: 2016 Global Edition

by Donald Light,  Luis Chipana, July 15, 2016
Product Trends/ Reviews
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Celent has released a new report title Ceded Property and Casualty Reinsurance Solution Spectrum: 2016 Global Edition. The report was written by Donald Light, Director in Celent’s North America Property/Casualty Insurance practice and Luis Chipana, Analyst in Celent' Insurance practice.

The core business of insurance companies is to manage the risks from the policies which they write. Often they will reduce that risk by transferring some amount of it to a reinsurer. In this context primary insurers are defined as insurers that either do not usually assume reinsurance from other insurers, or do so in amounts that are not financially material.

The world has no shortage of natural and man-made disasters. Shifting tectonic plates, aberrant weather patterns, domestic and international political instability, and even new technologies (e.g., nanotechnology, cyberattacks) present risks that insurers exist to mitigate.

There is increasing interest among primary insurers in reinsurance solutions that provide recordkeeping and execution capabilities to make reinsurance programs provide the value they were designed to provide. In this report, Celent profiles 13 ceded reinsurance solutions from 12 vendors. The report looks at the solutions’ functionality, technology, customer base, and geographic footprint.

A ceded reinsurance system has six core elements: contract administration, underwriting support, a premiums and commissions calculation engine, a claims calculation engine, technical accounting functionality, and financial accounting functionality.

“The cost of not having a reinsurance system can negatively impact company results.  Without a system, some insurers have discovered that, at best, they could not provide accurate snapshots and projections to senior management, investors, and rating agencies,” comments Luis Chipana, analyst in Celent’s Insurance practice and coauthor of the report.

“At worst they have tens or hundreds of millions of dollars of unrecoverable reinsurance recoverables, or are out of compliance with applicable laws and regulations,” adds Donald Light, Director in Celent’s North America Property & Casualty Insurance practice and coauthor of the report.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

Ceded Reinsurance Administration Systems for Property and Casualty Business

3

An Overview of the Solution Spectrum

7

Vendor Profiles

10

Computer Sciences Corporation: SICS Cede

11

DataCede, LLC: CedeRight

17

FIS: ProCede

22

NIIT Technologies Ltd: Navigator RI

27

Prevail Consulting Inc.: Prevail Reinsurance System (PRS)

32

SAP : SAP FS-RI (Reinsurance Management)

37

Sapiens Corporation N.V.: Sapiens Reinsurance

42

Sequel Business Solutions Ltd: Sequel Re

47

StoneRiver, Inc.: Freedom Reinsurance System (FRS)

52

StoneRiver, Inc.:  Universal Reinsurance System (URS)

57

Tata Consultancy Services: TCS BaNCS for Reinsurance

62

Tecnocom Telecomunicaciones y Energia S.A: Aneto

67

Xuber, part of the Xchanging Group: GLOBAL XLPro

72

Conclusion

77

 

For Insurers

77

 

For Vendors

77

Leveraging Celent’s Expertise

70

 

Support for Financial Institutions

79

 

Support for Vendors

79

Related Celent Research

80

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