The use of automated reinsurance administration technology is growing, but only one out of three insurers is reaching that level. The remaining two-thirds are still using partially automated or manual systems.

According to a survey conducted on behalf of Inpoint Services, an Aon company, 32 percent of insurance companies use comprehensive technology systems to support their reinsurance processing, up from just 17 percent in 2005. However, 42 percent of insurers still use partially automated systems and 26 percent rely on manual processes, such as spreadsheets.

The survey of 138 insurers found there is a direct correlation between company size and technology use. Only 23 percent of smaller firms (those with less than $100 million in ceded premium) have fully automated systems, while 57 percent of large companies (those with more than $500 million in ceded premium) have fully automated systems. Even among companies that are highly automated, size dictates the type of systems used. Small companies tend toward off-the-shelf software, while larger firms tend to develop their reinsurance administration technology in house.