Author Archives: Jesse Nickerson and Oli Morran

Jesse Nickerson and Oli Morran

About Jesse Nickerson and Oli Morran

Jesse Nickerson

Jesse is a Senior Director, Pricing Actuary at RMS and is an Associate of the Casualty Actuarial Society. He earned a bachelor’s degree in mathematics in 2005 from Lafayette College and a master’s degree in mathematics in 2009 from Western Washington University.

Jesse has spoken recently at industry events on the topics of spectral risk measures and Bayesian inference. His actuarial work has centered on the development of simulation-based software products and actuarial pricing tools, which is his current focus at RMS.

Oli Morran

Oli is a Director of Product at RMS. He has spent 10 years helping companies in the insurance industry leverage data and analytics to improve risk decision making, and focuses now on finding technological solutions to challenges in the reinsurance market.

Oli holds a bachelor's degree in Mathematics, Statistics and Accounting from the University of Strathclyde.

Technology: The Springboard to Innovative Treaty Underwriting

Cautious optimism surrounds the January 1, 2020 reinsurance renewals, with expectations that the anticipated hardening of rates might be realized – to a modest degree at least.

Reinsurance underwriters who can harness technology to conquer historic risk assessment challenges – including robust marginal impact analytics, and create the space for innovation can build customer relationships that are resilient to future market rate oscillations.

The capital influx to reinsurance markets, triggered by low market returns globally, has led to increased limits and more generous terms being offered without commensurate increases in rates. This trend can only last for so long before having dire effects on reinsurer profitability. 

Profitability in the primary insurance markets has been helped by innovation, with new product offerings linked to enhanced risk assessment techniques like telematics. But while the insurtech wave has propagated hundreds of companies and ideas focused on primary insurers, progress in “reinsure-tech” has been limited, due primarily to the current soft market. These market conditions have constrained resources available for speculative investments and has limited the reinsurer’s ability to pursue potential upside in the fast-moving tech space.

Almost ironically, in response to the market conditions, companies have instituted cautious underwriting approaches still rooted in low-fidelity risk assessment techniques, which haven’t evolved to capitalize on the technological advances made since the market softened at the start of the decade.

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