The reinsurance sector has historically lagged behind primary insurance in adopting new technologies, but that is rapidly changing. As regulatory demands, data complexity, and competitive pressures mount, the industry is moving to modernize. Marcin Jaremko (pictured), reinsurance competence project manager at Sollers Consulting, recently shared his perspective on why the sector has been cautious, what’s changing, and what reinsurers should watch for as the pace of transformation accelerates.
Jaremko challenges the common perception that reinsurers are inherently risk-averse. “Reinsurance is all about accepting risk. But what triggers reinsurers is not understanding the risk. They simply do not accept things they cannot quantify in their actuarial calculations,” he explained. New technologies, especially those like AI, introduce “question marks” around transparency and auditability. “AI, for example, is basically a black box. You cannot trace how it arrives at certain conclusions. For the reinsurance market to be applicable, they need to be traceable.”
This need for transparency means that AI is currently being applied to more routine tasks – such as OCR, transcription, and text analysis – rather than core analytical work. “Until the technology, the transparency, and auditability can progress, I believe AI will be used for more mundane tasks, but not actual analytical work.”
The difference between insurance and reinsurance, Jaremko said, is largely about scale and complexity. “Insurance is more about volumes,” he noted. “Automation and AI bring more benefit to insurers because of the sheer number of policies and transactions. Reinsurance is more tailor-made. Each reinsurer receives far fewer submissions, but each one is more complex.”
Despite these differences, the drivers for digital transformation are clear. “Reinsurers are incredibly good at optimizing their processes and resources,” he said. “With automation and AI, they can use the same resources in better ways, assess more incoming submissions, and hopefully increase the accuracy of analysis. Regulatory standards like Solvency II and IFRS 17 are extremely complex and put a huge administrative burden on insurers and reinsurers alike. Technology helps smoothen those processes, speed them up, and improve data quality.”
Technology is already embedded in many reinsurance processes, from submission to binding and renewal. “Underwriting is supported by workbenches, more and more by AI at the data ingestion stage. Every cedent prepares data in their own specific way, so until recently it was manual work. Now, thanks to AI, it is being streamlined,” Jaremko said.
Integration, however, remains a challenge. “There is a huge variety of tools,” he said. “Some providers offer whole ecosystems, which makes integration easier, but this mostly works on the direct side. For reinsurance, it’s a bit harder because needs vary so much depending on the book and processes. More and more tools are API-enabled, so we can overcome this obstacle and make all those systems work for the client, not against them.”
Jaremko sees technology as a competitive differentiator – particularly in response time. “A couple of years ago, some submissions were left on the desk because underwriters simply didn’t have time to look at them before signed lines were issued. Now, thanks to more streamlined underwriting processes and AI triaging, they can more quickly identify the submissions they are interested in and respond to more business. They benefit from a wider footprint.”
But hurdles remain, especially around change management and trust. “It’s all about transparency,” he said. “Business people need to see the real benefit. They need to understand that the tools actually help them in the process. Sometimes it’s easy to get the message across; sometimes it’s harder if people are used to their ways. Providers and system integrators like us try to show them the benefits and real-life use cases.”
Jaremko’s advice to reinsurers looking to future-proof their operations is pragmatic. “It’s becoming more and more complex, and I don’t believe it’s economical or even possible for one organization to have all the necessary knowledge to judge such a complex issue like IT transformation internally,” he said. “Be open-minded and seek assistance from multiple sources.”
Asked what excites him most about the future, Jaremko points to the unknowns. “We are entering a new age in the industry,” he said. “Some insurers were already implementing technology to a wider extent, but now it is becoming mainstream. The quality of AI models is improving not every year, but every month. The speed of transformation is astounding. I’m just curious what will be possible in two months’ time.”
As reinsurance continues to evolve, the challenge will be to balance innovation with transparency, and to ensure that technology serves as an enabler – not a barrier – to better risk understanding and decision-making. The sector’s mindset is shifting, and with it, the possibilities for smarter, faster, and more resilient reinsurance operations.
