Reinsurance sector must embrace technology
The reinsurance industry has made tremendous strides over the years. Coming from a virtually non-understandable industry to a pivotal and important part of the insurance industry across the world today.
Reinsurance has, over the years, allowed more insurers to take in more policyholders by protecting them against insolvency.
It has also helped insurers stabilise against financial losses and decrease overall risk.
However, in the industry, growth as a reinsurance company is key to ensure maximum protection for insurance companies.
Expansion to different markets and tapping into different segments is instrumental in unlocking the potential and overall business.
For instance, the Kenya Reinsurance Corporation has diversified its operations to different countries such as Zambia and Côte d’Ivoire just to mention a few in a bid to unlock the francophone sub-Saharan Africa Market.
Growth into products such as Islamic insurance has put the corporation on the international map.
Solid and well developed strategies do not only set a solid foundation for reinsurance business, but also help the reinsurer outline a solid route map that will guide their practice.
Local reinsurers have implemented strategies that have seen them expand and tap into more of the Eastern Africa region.
Strong strategies ensure profitability, stable growth while moving on a guided and targeted path.
Technology remains key in this industry as adoption and implementation of systems that insure global and international practice has helped to ease processes, while ensuring accuracy in reporting.
It also allows automation in more areas a trend that has led to both efficiency and improved accuracy.
In addition, blockchain technology assists in eradication of fraud which often happens during fraud claims.
This enhanced operating system is an automated process that is a cryptographically secured form of record-keeping, which makes verification of data easier.
According to surveys recently released by McKinsey, automation can reduce the cost of fraudulent claims by up 30 per cent.
To keep afloat within the reinsurance industry, however, an organisation must remain ahead of its competition to ensure they provide robust and impactful products to the insurance companies.
A need for product customisation may arise due to the ever-changing insurance needs of consumers, hence more insures creating tailor-made packages to suit their client’s needs.
Technology implementation and innovation must stay in the heart of reinsurers not only to ease and automate processes, but to keep up with the ever-changing trends.
As the Kenya Re is set to celebrate its 50 years in business this year, deliberate and continuous efforts continue to be put in place to ensure transparency, ethics and professionalism while ensuring overall success, profitability of the business and overall growth of the reinsurance and insurance industry as a whole. —The writer is the managing director, Kenya Reinsurance Corporation