Insurance carriers run their
reinsurance programs through different areas of the company. Some
operate in the claims area, others
in finance or accounting, and
some are even in underwriting.
For Motorists Insurance Group,
reinsurance finds its home in the
Motorists had three issues that
affected the reinsurance program:
budgetary restraints, a lack of IT
support, and the capacity restraints
in the accounting area to devote
resources to the problem, according to Tom Brock, assistant vice
president, finance, for Motorists.
Brock is quick to point out that the lack of IT support had
nothing to do with the willingness of the IT department to resolve
reinsurance issues, but rather the capability to devote resources to
the problem to address the issues as well as other technology issues
that already were lined up.
“The lack of a centralized secure platform to administer re contracts and facilitate the process was becoming increasingly problematic,” says Brock. Motorists’ system for tracking reinsurance
claims with Excel and Access was time-consuming and unproductive. Also, the process didn’t lend itself to providing management
the information it needed in a timely fashion.
“We had disparate systems and labor-intensive processes,” says
Brock. “To ensure accuracy, we maintained a lot of downstream
checks and balancing routines that were inefficient. We needed to
To address the problems, Motorists began with an assessment
of the company’s internal environment to determine what was
being done and what could be done better. To do that correctly, the
carrier enlisted the help of a consultant to begin the search for a
new reinsurance platform.
The consultant gave Motorists a list of vendors they felt could
satisfy the carrier’s needs, but Motorists wasn’t overly impressed
with what was out there, according to Brock. One vendor that was
not on the initial list was Effisoft.
“The level of technical knowledge at Effisoft was conveyed and
we were impressed with how receptive they were to our needs,” says
Brock. “They assured us they could customize our requirements.”
Many vendors focused on the assumed perspective of reinsur-
ance; Motorists looked to improve the administration of its ceded
operations and found Effisoft to be familiar with its needs. “They
conveyed confidence with every hurdle we presented,” he says.
Motorists launched an RFP-based search in 2011 and identified
the appropriate solution in early 2012. Other priorities delayed
things, according to Brock, but Motorists maintained an open line
of communication with Effisoft throughout 2012 and the contracts
were executed in the first quarter of 2013. Motorists launched the
implementation of Effisoft’s WebXL product shortly thereafter.
The implementation stretched longer than the carrier antici-
pated, partially due to shifting priorities on Motorists’ end and a
mutual underestimation of the time it would take to customize the
solution to Motorists’ needs. The implementation was completed in
the second quarter of 2014.
Will Thorsberg, property/casualty accounting manager, man-
aged the development project and was the key contact for Effisoft.
“Effisoft’s effort went far beyond the usual,” he says. “Their team
overcame every obstacle and was always responsive and available.”
“The solution has lived up to our expectations,” says Brock.
“We haven’t finished enhancing our workflows to fully leverage
the opportunities introduced to our environment, but additional
enhancement efforts are ongoing.”
Senior management now has a greater comfort level with the
reinsurance process. “They’ve definitely taken note of the enhanced
controls and increased efficiency,” Brock says.
WebXL’s capabilities also help Motorists work more effectively
with outside parties—rating agencies, reinsurers, brokers, external
auditors, and state examiners—who appreciate the secure and
transparent nature of this system, according to Brock..
“It helped us modestly enhance our bottom line as a result of
gains in efficiency,” says Brock. “The investment has already paid
for itself and we see some positive cash flow, but it was really the
other factors that drove us.”
Motorists has an ambitious vision for 2021, according to Brock,
and it calls for aggressive growth. The carrier believes the reinsur-
ance implementation has positioned the company for that growth
and will enable Motorists to process a greater volume of transac-
tions and handle more complex reinsurance arrangements without
“It’s also improved our risk management capabilities and
enabled us to meet the increasingly stringent expectations of our
regulatory bodies,” points out Brock. “It’s well aligned with our
vision for the future.” ITA
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New reinsurance platform eliminates slow processes for Motorists Insurance.