In an increasingly complex geopolitical environment, James Mahon of global technology services provider DXC Technology urges a move away from manual processes and fragmented systems towards modern, automated reinsurance platforms to enable reinsurers/insurers to maintain control, respond to changes faster, and compete in volatile markets.
James Mahon, head of reinsurance pre-sales at DXC Technology, said in an interview with Reinsurance News that geopolitical instability is dominating the reinsurance agenda, with ongoing conflicts and escalating tensions, especially in the Middle East, leading to uncertainty in global markets.
He highlighted that this growing complexity is already evident in sanctions compliance, cross-border transactions and counterparty risks, as well as heightened cyber risks associated with geopolitical activities.
Mahon explains: “Recent geopolitical developments have brought greater volatility to reinsurance portfolios, requiring faster responses to changing risk profiles. Risk exposures can change rapidly as conflicts develop, supply chains are disrupted and regional risks are reassessed. This often requires adjustments to treaty structures and participation across the reinsurance chain.
“At the same time, increased claims activity in areas such as political risk, aviation, maritime and cyber has placed additional pressure on reinsurance teams to calculate, track and recover amounts from multiple counterparties, often involving layered programs across multiple reinsurers, brokers and jurisdictions.”
He warned that organizations that still rely on manual processes and fragmented systems will struggle to keep pace in an environment where speed, accuracy and control are critical. Disconnected data slows decision-making, while operational bottlenecks reduce agility and increase the risk of errors, recovery delays, and claims leakage.
He added: “Geopolitical tensions also create further complexity through evolving sanctions regimes, cross-border payment restrictions and increased regulatory scrutiny, as well as tighter enforcement around sanctions screening and reporting.
Mahon emphasized that ensuring transactions, partners and recoveries remain compliant requires timely access to accurate data, which can be difficult to achieve across multiple systems.
“In addition, counterparty stability can change rapidly as creditworthiness and financial strength change (for example, following regional financial stress or sovereign rating stress), requiring ongoing monitoring and rapid response. Credit control activities are no longer periodic checks but an ongoing operational requirement.
“Without a consistent view across the reinsurance chain, it becomes increasingly difficult to maintain this level of oversight, exposing (re)insurers to compliance breaches, payment errors or recovery delays due to outdated counterparty or sanctions data. In a market where speed and accuracy are critical, these operational constraints can have financial and reputational consequences,” he said.
Mahon emphasized that meeting these challenges requires moving to modern reinsurance management solutions that bring contracts, claims and accounting into a single controlled environment.
He said: “With consistent, reliable data throughout the lifecycle, (re)insurers can quickly identify which treaties and risks are affected by geopolitical developments and take action without having to rely on manual reconciliation from multiple sources. Complex calculations, recoveries and accounting entries can be processed in a structured, repeatable way. This reduces delays and limits the risk of errors as volume and complexity increase.
“Enhanced process controls are also critical when it comes to compliance and counterparty management. Streamlined platforms with access to the latest sanctions and credit data enable (re)insurers to monitor partners and transactions as conditions change, rather than relying on regular checks. Clear workflows ensure that the correct processes are followed for payments and recoveries even as restrictions change, while maintaining consistency across teams and systems.
“A clear audit trail of all activity supports governance and regulatory reporting without the need for additional manual work. With reliable data and structured processes, reinsurance teams can focus on interpreting contract terms, managing risk and making timely decisions as market conditions change.”
Mahon added that geopolitical uncertainty is likely to remain a defining feature of the reinsurance landscape, noting that while the external environment cannot be controlled, the ability to respond effectively can.
“(Re)insurers that continue to rely on manual processes will find it increasingly difficult to manage this level of complexity. Those that invest in modern, automated reinsurance platforms will be better able to maintain control, respond to change and compete in a more volatile market,” he concluded.
