An Integrated Approach to the Design of a Reinsurer's Data Architecture

A reinsurer's internal database can be a valuable source of data that has the potential of providing a competitive advantage. This data can be used to refine pricing, business steering, contract design, new product development, planning, reserving, capital utilization and much more. To maximize the value of this internal database, it is important that the data be aligned, complete, and as granular as possible. This paper presents some of the significant uses of internal data, describes some of the most common challenges and discusses elements of an ideal database. The paper ends with a detailed discussion on line of business structure and describes an ideal way of allocating data elements to a more granular unit with particular application to IBNR allocation to contract.

Keywords: Reinsurance Data, Reinsurance Information Management, IBNR allocation, Reinsurance line of business