Growing insurers quickly find that their initial approach to reinsurance buying—letting each division purchase its own cover—isn’t built for scale.
It’s simple and cost-effective for smaller outfits, but as you expand into new markets and classes of business, you’ll soon see why larger players take a different tack.
Stepping Up to Centralisation
Many mid-sized and large insurers consolidate their reinsurance buying into one central team.
Instead of fragmented deals across each P&L, they unify their data and negotiate bigger, more flexible programmes.
Think of it this way: if you’re buying personal lines protection in Denmark, France, and Italy separately, chances are you’re missing out on economies of scale and more favourable pricing.
Combine them, and suddenly you’re a more attractive partner to the market—able to secure better terms and broaden your strategic options.
Enter the Internal Reinsurer
Even centralisation has its limits.
The biggest, most complex insurers—like Allianz or Liberty Mutual—take it a step further by introducing an internal reinsurer.
They centralise all incoming risk data, cede to their group-level reinsurer, and then that entity goes out to the external market.
By doing this, you unlock sophisticated products like cat bonds and bespoke risk-transfer solutions that might be out of reach otherwise.
The entire organisation’s exposures are channelled into one powerful unit, letting you tap into cutting-edge structures that align perfectly with your balance sheet needs.
Data Management: The Hidden Complexity
The trade-off, of course, is complexity.
Each layer of consolidation means more data flowing from front-line underwriters up through increasingly complex pipelines.
The bigger you get, the more potential there is for confusion, disconnected insights, and lost narratives that could have helped get even better terms.
This is where technology becomes a game-changer.
Platforms like Supercede ensure your data remains clean, coherent, and easy to share—even as it moves through multiple organisational layers.
Rather than losing the story behind your risk data, you can maintain transparency, consistency, and agility.
That means you still get all the advantages of scale and sophisticated products—without drowning in administrative headaches.
A Tech-Enabled Future
For high-level insurance practitioners, the message is clear: as you grow and seek more complex solutions, your data strategy matters as much as your buying strategy.
With the right tech, you can master complexity, present a compelling narrative to the market, and secure the reinsurance structures you need to thrive.
It’s not just about getting bigger; it’s about getting smarter—and ensuring your reinsurance strategy is always one step ahead.
