Reducing insurance costs is all about reducing risk. Premiums are based on estimated future losses, and the more you can do to reduce the probability of loss and become a better risk, the more your business can save.
One of the most effective ways to manage risk is a Risk Management Information System (or RMIS), an electronic repository of risk data including claims, exposures, values, location schedule and policy information. A RMIS uses historical data to provide insights into cost drivers, management practices and opportunities to improve safety.
We asked Bob Petrie of Origami Risk to summarize how technology can be used to manage risk and insurance. His suggestions:
Identify Cost Drivers
When a business is using risk management software for regular reporting and to process claims, a side benefit is that they will have the opportunity to more easily mine the data in the reports to identify the root cause of losses. Well-organized, detailed information helps businesses discover insights about what is driving the frequency or severity of incidents. It can also help track specific actions to mitigate these cost drivers and measures results. Automated reports can help managers and supervisors track their progress against goals.
Improve Collaboration
Running a business without a risk manager makes it even more important to have a good partnership with your broker. You need to be able to organize all of the supporting data required for an insurance submission so that you are in the best position to get appropriate coverage at the right price. A RMIS can replace the dozens of spreadsheets and documents that are usually needed to place and bind coverage.
Identify Trends and Outliers
A good risk management dashboard is configured to the unique requirements of each client's industry. It will help you see your trends, exceptions, performance against benchmarks and notable events, all in one place. For example, users can configure their dashboard to meet the unique needs of different users in finance, legal, human resources and operations departments.
Improve Efficiency
Investing in a RMIS allows you to automate many of the manual tasks found in managing any insurance program.
- You can achieve more with less time and staffing by automating various compliance activities such as OSHA logs and reports.
- The software can automate incident and claim reporting.
- You can schedule reports so that the software automatically sends updates to users to provide them with the information they need to do their job.
- Software can even manage insurance requirements for vendors or leaseholders automatically.
- Your business can spend more on managing risk when you use technology to cut the amount of time you spend on manual tasks.
Talk to your HUB broker about how your business can use a RMIS to simplify managing your risks.
Bob Petrie is the co-founder of Origami Risk, a leader in the RMIS industry. Bob is quoted in trade magazines, has been profiled in industry publications and is a frequent speaker at national and local conferences.