How to Scale Efficiently: Lessons from an Acord Case Study
So here you are, sailing your ship, trying to scale operations in the high-stakes environment we all know as global reinsurance. Yes, you’re really pushing for it this time, full steam ahead. Except, uh oh. Here comes an ice berg, held sturdy underneath the water by the manual burden of claims administration. You glance to the side and, oh look, it’s a massive wave of complex portfolios, and all you’ve got to rely on to get through is good old re-keying and manual reconciliation. Yep, this ship's going down…
But wait! What is that upon the horizon? A recent ACORD case study has highlighted how a major industry player managed to avoid these exact waters. And they’re doing more than staying afloat. They are sailing proudly. Their claims transformation, as documented by ACORD, has set a new industry benchmark. Intrigued? Let’s look a little closer at the findings from this study…
From 46% to 68% straight-through processing
As the ACORD report details, major reinsurer RenaissanceRe has modernised its core processes by increasing its straight-through processing rate rapidly between 2021 and 2025. The reason, of course, why this is so incredible is because of the challenging, all-encompassing friction which comes from multi-layer claims.
Unlike simpler lines of business, multi-layer claims require navigating varied global processing models, including the specific nuances of the US, European, and Lloyd’s markets. Thus, the objective was not simply to automate, but to achieve e2e (end-to-end) eMessaging that could handle these complexities without increasing administrative headcount.
How did this happen?
If the first word which comes to mind upon hearing the above is… how?! Then let’s dig into it. I had the pleasure of working on this project and I can tell you that its success rested on three strategic pillars:
Standardisation: Adopting ACORD-compliant messaging (GRLC standards) to ingest data seamlessly from major brokers like Aon, Guy Carpenter, and Gallagher Re.
Infrastructure: Leveraging the SICS (by DXC) eMessaging engine as the foundational pipe for data.
The Integration Layer: Developing a bespoke workflow and case management system designed specifically for the multi-layer environment.
It is very important to note, and remember, that implementation projects of this scale rarely succeed on software alone. The last mile of the project, that is, getting it over the line and into production, required an absolutely disciplined focus on precise mappings and system validations.
Thus, by engaging specialised technical experts to fine-tune these settings, it was ensured that the system could consume all message types (CM, TA, and FA) with automated validation. And it’s this kind of technical rigour that got them the 40% booking automation rate they now relish in, for claim worksheets via B2B channels. I cannot tell you how much this reduces the time spent on ledger reconciliation and triage.
And so the standard is set
RenRe has, without a doubt, succeeded in what they set out to do. Their case study offers several vital lessons for other companies looking to modernise, and if it has not been made clear how so already, then I would like to make it so now:
Bring in technical and project management specialists early. It prevents scope creep and ensures that global standards are adapted correctly.
Opt for a phased deployment. Managing risk through incremental rollouts allows for continuous refinement based on user feedback.
Outcome driven is always best. It ensures that success is measured by the ability to scale the business without scaling the admin workload.
I am most proud to have been a vendor on this project and couldn’t be happier for RenRe with their results!
If you are a reinsurer looking for guidance on how to achieve results like these with your technology implementation, look no further. Get in touch and let’s talk about it:
Case study of this project: