Reinsurers must transform themselves to address new risks and unlock value. BCG’s reinsurance industry expertise and digital know-how can guide them through the transition.
Reinsurance companies are used to the risks associated with insuring other insurance companies against catastrophic events. Now, however, they’re dealing with risks closer to home—namely, threats posed by evolving business models, rapidly changing regulations, market consolidation, and the need to adopt more automated processes and digital capabilities.
BCG helps reinsurers meet the challenges they face by launching new ventures, updating business models, and undertaking digital and technology transformations. This entails, among other things, adopting agile at scale and becoming a bionic company, which blends human expertise with the power of technology. We also work with reinsurers to improve operational resilience and enable their digital transformation efforts, as well as define and implement corporate strategies.
Our reinsurance consulting work touches on every aspect of the business—including reinsurance strategy, product development, sales, underwriting, claims, payments, and customer service—and covers companies offering all types of reinsurance. We combine our reinsurance consulting capabilities with a set of proprietary tools:
The BCG Insurance Profit Pools model provides product-level market sizing and profitability for premiums, along with a decade of regulatory report data and forecasts for more than 30 KPIs through 2025. It helps reinsurance underwriting specialists prepare for major market shifts and identify geographic markets and product lines they should enter or exit.
Our nine key levers, based on our extensive expertise in the industry, help insurers close the digital maturity gap, become bionic, and better serve customers.
Our reinsurance consultants work with BCG's business transformation experts to deliver the kind of short-term impact and longer-term transformation that companies need to emerge from down markets as winners.
Our Insurance Excellence Benchmark gauges performance on key dimensions, such as customer centricity and digital readiness. It uses a variety of data to help insurers identify and close competitive gaps.
The Digital Acceleration Index analyzes reinsurers’ strengths and weaknesses in order to prioritize areas for improvement and accelerate digital innovation.
Our reinsurance consultants collaborate with BCG specialty businesses, including BCG Platinion for work that requires the development and implementation of business-critical IT architecture and digital solutions; BCG GAMMA on projects that involve advanced analytics and AI; and BCG Digital Ventures to launch or invest in a new business.
Managing Director & Partner
London
Reinsurers’ average annual TSR has generally exceeded that of primary insurers over ten- and five-year horizons.
A growing global skills mismatch offers tremendous opportunities for institutions and businesses to step up, upskilling and reskilling today’s workforce.
The COVID-19 pandemic—along with the new reality taking shape because of it—has created a clear mandate for insurers: deal with the rigors of the present and the near future while preparing for challenges and opportunities over the longer term.
The best engines cover the entire data life cycle—from sourcing and analysis to integration into decision making.
Insurers investing in data science projects should focus on three critical dimensions: time, value, and certainty.
