One of the fundamental aspects in any company is communication and information exchange, especially if it is a large and complex company with a presence in several countries. Sharing data in a multinational on important issues is vital but often difficult to do. It is necessary to manage a huge flow of communications, even in different languages. Excel spreadsheets are often still used to incorporate and share this information, so the chances of errors occurring are high.
In the case of an insurance or reinsurance company, the procedure is the same. Each country in which it operates provides asset values, premiums, loss ratios and other parameters. The management of different currencies further increases the complexity. Dozens of different types of policies are managed, adapted to different countries and coverages, as well as being written in several languages. This may mean processing information from 100 or more different types of policies.
One of the solutions is to build a proprietary risk platform where all the data can be centralized, so that not only can the data be easily accessed, but also that the information uses the same standardization model and that the data can be updated whenever necessary. Companies are striving to fully digitize communications – whether internal or with customers and suppliers – in order to achieve effective data exchange. Avoiding the need to collate and merge different spreadsheets increases efficiency and minimizes errors.
Digitization of communications improves performance
A useful tool in this respect are APIs (Application Programming Interface), which make it possible, for example, to manage claims data, especially when handling global data. APIs, in the case of captives, help to assess risk efficiently. Another goal is to have the same department handle all claims, from the smallest to the largest.
Keys to communication in insurance and reinsurance companies:
- An Excel sheet is a very limited method of sharing information.
- Multinational companies have to manage information written in several languages, so standardisation formulas and systems must be sought.
- Communication is not only internal (within the company), but also external, with customers and suppliers.
- Companies aim to digitize 100 percent of their communications to improve performance.
- One of the keys to effectively manage communication and information is to centralize it.
- For insurers and reinsurers, effective communication of information is essential for assessing risk, calculating premiums, and setting appropriate business strategies.
- Digitization of communication helps to overcome problems such as control and traceability.
