Transforming Reinsurer Data Monitoring at Scale with DQPro

The Challenge:

Reinsurers receive large tranches about the risks they insure from both brokers and ceding insurers. Much of this data is complex and loaded into legacy policy systems, either manually or via a basic “upload” process. In addition, the premium income received from Proportional Treaty reinsurance contracts is highly variable because much depends on the performance and profile of the primary insurer’s book. These challenges make effective reinsurer data monitoring difficult.

Here’s why:

Ensuring adequate coverage of controls – across the volume of variable contract data is challenging and time consuming, taking hours on average for each contract.
Checking contract data is often an ad-hoc, manual, error prone process and doesn’t scale – relying on exception reports and email for resolution means adding unwanted operational headcount.
Lack of visibility – key data issues such as EPI variance or late arriving SOAs are hard to identify and often found later than desired in downstream operations vs. being clearly notified and fixed at the time of data ingestion.
Lack of flexibility – it is difficult to apply new checks quickly to legacy systems and their data as the business, market and regulatory landscapes undergo constant change.

The Solution:

To address these challenges, one private equity backed $3.5B Reinsurer selected DQPro to provide continuous, automated monitoring of contract data across their Global RI Operations Team. After a successful 4-week pilot, DQPro was configured with an initial 70 + rules providing data quality and real time controls for our client’s Operations teams in UK, Asia, Australia and USA. Many checks were applied to monitor the development of long tail Proportional Treaty contracts as they develop e.g. comparing EPI vs Actual premium variance – to significantly improve the accuracy and efficiency of group financial and regulatory reporting.

The Results:

Implementing DQPro’s reinsurer data monitoring solution led to:

Significant Efficiency Gains – Ops users are notified of issues instantly saving significant time effort and cost. Issues are quickly assigned to the right user or team to address internally or to discuss with the relevant broker or cedent. A Comprehensive set of 200+ Controls – now helps support internal and external data audit, reducing their time to prepare from 3 weeks to 30 minutes.
100% Visibility of Issues 24/7 – Users have complete confidence that for the first time all issues are being found and flagged for resolution immediately.
A Flexible, Scalable Solution – that can easily cope with increased volumes and new checks without additional cost or effort.
Happy Auditors – with DQPro the RI Operations Team can now demonstrate how and when each issue occurred together with how they were resolved – with a supporting, timestamped audit trail.

About Our Customer

Our respected customer provides reinsurance and insurance coverage to clients in various domestic and global markets through wholly-owned subsidiaries in Australia, Bermuda, Canada, Ireland, Singapore, Switzerland, the United Arab Emirates, the United Kingdom and the United States. For the year ended December 31, 2019, they reported $13 billion in total assets, $7 billion in gross reserves, $2.9 billion in total shareholders’ equity and $3.5 billion in gross written premiums.