|By Marketwired .||
|October 16, 2013 06:01 AM EDT||
DALLAS, TX -- (Marketwired) -- 10/16/13 -- Most insurers still rely on spreadsheets to manage their reinsurance business and are losing money because they cannot track ceded reinsurance contracts effectively, Joseph Sebbag, CEO of reinsurance software vendor Effisoft USA, writes in the October issue of Best's Review.
"They don't have automated tools to effectively monitor reinsurance programs, placements or recoveries, let alone identify claims leakage, overpayments and excessive risk exposure or even track out-of-compliance reinsurance contracts," he writes.
For instance, after implementing a reinsurance solution, a European client detected more than $1 million of overlooked claims; that alone paid for the whole system, Sebbag writes.
Manual processes no longer work partly because experienced reinsurance administrators are either retiring or leaving insurers. Furthermore, regulations and standards such as Solvency II, Sarbanes Oxley, and International Financial Reporting Standards, behoove insurers to tighten up and document compliance.
"They're left with no choice but to implement a full solution to manage the complex compliance processes they must institute," he writes. "Implementing a solid solution will enable carriers to reap all the value a reinsurance system has to offer, including accurate claims identification, comprehensive management of aging recoverables and full compliance with current regulations," he concludes.
The article can be read in its entirety at http://tinyurl.com/kr4ukqp.
Sebbag can be reached at firstname.lastname@example.org.
Effisoft USA (www.effisoftusa.com) is the North American division of Effisoft, founded in 1989 as an independent, expanding, proactive company that respects its commitments towards its clients. It is committed to improving its products and services to provide impeccable support to an increasingly diversified and demanding market. Based in Paris, the worldwide company has more than 300 clients in five continents and 15 countries.