Industry Spotlights | July 9, 2025

It’s time to automate the ceded reinsurance process

By James Mahon

Digital transformation and automation are at the core of every insurer's strategy. But critical back-office tasks like billing, customer service and claim management are often still managed manually and fly under the radar.

A critical tool for managing risk

One notable area that is often overlooked is ceded reinsurance, a critical function burdened by manual processes and outdated tools.

Even though reinsurance plays a crucial role in keeping insurers protected, the actual process of managing it often gets very little attention. Many insurers still rely on spreadsheets, email chains and homegrown tools to manage billions of dollars in reinsurance contracts and claims.

Ceded reinsurance is essentially insurance for insurance companies. When an insurer takes on a large risk they don’t always want to carry all that risk alone. So, they “cede” or pass on part of it to another company, called a reinsurer.

This is a problem that will only get worse

Here’s why:

Contracts are getting more complex: Modern reinsurance agreements are multi-layered, involve multiple partners, and include intricate terms. Tracking everything accurately, especially when relying on manual calculations and disconnected systems, leaves too much room for error. For an industry dealing with million-dollar contracts, that’s a big risk.
Missed claims and recoveries: When something goes wrong, insurers often turn to their reinsurers to recover part of the cost. But if systems aren’t connected or if teams are working in silos, those recoveries can fall through the cracks. That’s money left on the table—and it can quickly add up.
Inefficiencies and operational risk: Manual processes slow everything down. They also create a heavy reliance on a few experienced staff members who know how the systems work—and if those people leave, so does critical knowledge.

Fragmented systems make it hard to get accurate data when it’s needed most, like during audits or regulatory reporting.

Automation can’t wait

With the reinsurance risk landscape becoming more complex, the risks of doing things “the old way” are too high.

The good news is there are now automated solutions for ceded reinsurance operations that address the inefficiencies and risks associated with manual workflows.

Automation isn’t just a nice-to-have—it’s essential. Here’s what it delivers:

Fewer errors thanks to standardised calculations and processes.
Faster, more accurate recoveries, so insurers get the money they’re owed.
Better compliance with built-in audit trails and real-time reporting.
Higher efficiency, freeing up expert teams to focus on strategy instead of spreadsheets.

Automation also helps connect the entire insurance ecosystem (from policy administration to billing to accounting), creating a more complete, transparent and efficient operation.

For example, an insurer that automates its ceded reinsurance processes can catch recovery opportunities that were missed with fragmented systems and inconsistent data.

Standardised workflows and connected data can also reduce the processing time for claims recoveries and provide real-time visibility during catastrophic events.

The big picture

The days of managing reinsurance on spreadsheets are numbered. Automating the ceded reinsurance process can simplify complexity, reduce risk and unlock real value.

The good news is that DXC insurance experts are helping organisations address the issues they confront as they manage reinsurance contracts and claims.

DXC's insurance business—with its easy-to-consume, flexible software-as-a-service models—has served over 1,000 clients and processed more than one billion insurance policies, accounting for a staggering 10% of the world’s premiums. These are just a few examples of the many ways DXC brings value to nearly every stage of the insurance life cycle.

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About the author

James Mahon is the Reinsurance Pre-Sales Lead, DXC Technology;

James Mahon is the Reinsurance Pre-Sales Lead at DXC where he works with (re)insurers to help them transform their reinsurance operations through the adoption of automated solutions that streamline the end-to-end reinsurance processing lifecycle.

This blog is based on an article that originally appeared in Reinsurance News.