8th March 2021
The hands that were once wringing in response to employees requests for home working are now tied by the shackles of COVID-safe office space requirements. Even the most stalwart believers of the equation that presence = productivity are beginning to embrace the benefits of operational teams working remotely.
London Market teams from all across the Insurance sector have spent practically a year, with significant renewal and financial close periods, servicing as ‘normal’ albeit in circumstances which have been far from how it has operated before.
There is expectation that the working practices brought about by COVID-19 may give rise to a shift of the supporting roles away from the main office on a more permanent basis, with a view to reduce rental overheads. Or it could lead to more outsourcing.
With this in mind, many in the London Market are realising the potential cost benefits of an outsourced bespoke service – helping them meet operational demands and increasing regulation.
Outsourcing of bulk operational tasks, in particular to off-shore entities, has been a regular feature in the London Market for many years. It has been a cost-effective mechanism for repetitive tasks with the London entity only requiring employees to manage the outsourced account, ensure service levels are adhered to or handle exceptions and outliers.
Times for London operational teams have been tough, in particular the ceded reinsurance area. We have seen staffing levels pared back over the last decade in line with a promise of technology to replace the traditional technician’s role. This lead to a decrease in the number of technicians entering the market to train.
Whilst the systems improve year on year they cannot automate every aspect of process, especially with ever-more-complex reinsurance programmes. It remains apparent that there is a real need for experienced technical colleagues to interpret the ceded reinsurance purchased, ensure that data recording and results are accurate in order that recoveries are maximised across the business.
Proficient reinsurance technicians are in short supply and traditional market outsourcing does not offer the bespoke service, alongside access to a team of highly skilled reinsurance practitioners, to meet market demand and increasing regulation.
We have experienced an increased appetite to provide insourced reinsurance resource to supplement a client’s existing ceded reinsurance team.
Perhaps the answer lie in seeking a combination of access to London Market technical reinsurance processing expertise with the cost benefits of a managed service solution.
If total homeworking in an age-old industry can be a success, then a Virtual Reinsurance Service should be a cinch.
To find out more about our outsourced service solution that uses London Market technical reinsurance processing expertise, please get in touch with Rob Dewen on Robert.firstname.lastname@example.org.
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