P&C Carriers’ Hottest Reinsurance Issue: Personnel Retiring or Leaving

OAKLAND, Calif., June 14, 2011 /PRNewswire/ -- According to recent research, the most critical issue facing the reinsurance department at property/casualty carriers this year revolves around personnel who understand reinsurance retiring or leaving the company. As the Baby Boomer generation retires, this challenge seems likely to continue until insurers recruit, groom or train replacements. Lack of reinsurance automation and accuracy of spreadsheet formulas tied for second place as vital issues.

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The fourth annual StoneRiver Reinsurance Administration Survey uncovered these concerns as well as other trends, interests and strategic direction of the industry. In April more than 40 participants responded from a cross section of primarily U.S. property/casualty carriers.

One-third of the responding companies have reinsurance automation, nearly double the number reported last year. The highest use of automation occurred at companies with $100M - $500M in direct written premium. However, even with greater use of automation reported, 60 percent still rely on spreadsheets and 7 percent use manual methods. While the majority still lacks automation, only one-quarter replied that their company does an average or less than average job of managing their reinsurance recoverables. That might be due, in part, to the fact that 57 percent receive recoveries in less than two months.

"The survey also indicates that carriers could benefit from automation of property catastrophe events," said Sue Peirce, AVP of Reinsurance Operations at StoneRiver, Inc. "In a year that has seen some significant catastrophes, only 37 percent rated their company above average in how well current processes allow automation of these events."

The number of participants using multiple currencies increased from 31 percent last year to 45 percent this year. Eight percent felt multiple currencies would be important for their companies in one to three years; five percent in three to five years.

An overview of survey results is available at www.stoneriver.com.

About the StoneRiver Reinsurance Solutions

StoneRiver Reinsurance solutions provide comprehensive automation for handling all facets of property/casualty reinsurance business. The reinsurance software manages treaties for ceded, assumed, retroceded, pools, and affiliates. Dozens of insurers across the nation rely on StoneRiver for their reinsurance administration.

About StoneRiver, Inc.

StoneRiver delivers the industry's widest range of technology solutions and services to insurance carriers, agents, and broker-dealers. This versatile product group encompasses front-office, policy, claim, rating, underwriting, billing, reinsurance, financial and compliance solutions for all major business lines. Hundreds of companies rely on StoneRiver software and processing solutions to achieve a competitive edge. StoneRiver promotes client success by streamlining complex business processes. Visit stoneriver.com for more information.

SOURCE StoneRiver