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7 Reasons Why You Should Use A RMIS For Your Commercial Insurance Renewal [Infographic]

Are you still using spreadsheets for your commercial insurance renewal data collection process? In our experience, collecting renewal data this way can take up to 75 days when you include chart and report production. Effective risk/insurance managers using Risk Management Information Systems (RMIS) can reduce this time to less than 20 days. Not sure if a RMIS is right for you? See how a RMIS such as RiskConsole can address your key renewal data and reporting challenges.

Topics: risk management renewals and submissions Exposure and Asset Management

And the award for “Best User Implementation” goes to…Hyatt and Ventiv!

It’s my pleasure to share the news with our blog readers that Ventiv Technology and global hotel chain Hyatt* have received a prestigious 2015 Risk Management Award, hosted by CIR magazine. Ventiv and Hyatt were named the joint winner in the “User Implementation” category, recognizing the year's most successful deployment of risk management software.

Winning a Risk Management Award from London-based CIR (Continuity, Insurance & Risk) magazine is a great honor. The award publicly acknowledges the remarkable, quantifiable results achieved by the Hyatt risk management team. On behalf of all of Ventiv, I’d like to congratulate the Hyatt and Ventiv team members who have made our collaboration such a great success!

Topics: risk management

What risk managers should know about coming changes to the accounting treatment for lease obligations

Many organizations lease assets such as real estate, airplanes, trucks, ships and construction and manufacturing equipment. Because of the prevalence of leasing, it's important for users of financial statements to have a complete and understandable picture of an organization’s leasing activities. For this reason, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued guidance and a proposal to change the accounting treatment for lease obligations. This isn’t new. FASB/IASB have been working on this revision since 2005. For those who like to get the details, see this FASB update from last month. (These changes are supposed to be effective in 2016, but given the magnitude of the impact, it could well be 2017 or 2018.)

As a risk manager, you may say, “Yes, this is interesting, but what does that have to do with me?” The answer could be "A lot!" depending on the structure of your property and casualty insurance program and your surety bond program. For example, when the forward obligations for leases have to appear on the liability side, the accounting rule change will make a pretty significant change in your company's balance sheet. Generally speaking, it will give the appearance that your organization has a lot more debt than was previously disclosed. This will likely have immediate impact in two areas: casualty collateral and surety collateral.

Topics: risk management Exposure and Asset Management

No data scientist on staff? 6 alternative sources of data expertise

I saw the following quote last week in one of the daily news feeds I subscribe to:

“We have data science needs all over the place.”
–Progressive Group CIO, Ray Voelker

I think we can agree that Progressive is one very forward-thinking leader in the highly competitive world of personal lines insurance, and that Mr. Voelker is one of its fastest paced leaders. He has tons of data at his fingertips as well as access to formidable resources in what Progressive calls its “Business Innovation Garage,” or BIG, which serves as Progressive’s version of Lockheed Martin’s Skunk Works. These guys KNOW what they’re doing with big data. 

If Progressive, of all companies, has data science needs “all over the place,” what about you and your company? As the risk manager, you have enormous amounts of data that are critical to getting your job done. You have financial data, operational data, claim and claimant data, property data, litigation data and so much more. In effect, you are sitting on a mountain of inestimable value. But how do you tap into that value?

Topics: risk management Data Security & Cyber Risk data management

Was it an “incident” or an “accident”? How a shared risk lexicon facilitates effective communication across a company

Over the course of my career as a risk manager, I’ve come to understand the importance of—and ongoing challenge in—aligning the risk management department’s priorities with those of the C-suite. Just last week, I read a great article, published by Advisen, about potential disconnects between risk management and the C-suite.

The article got me thinking about the importance of communication in the practice of risk management. Specifically, when it comes to communication between risk management and the C-suite, translating risk and insurance jargon into meaningful business terminology is one of the more common challenges for risk managers.

Topics: data intake & incident reporting

Measuring the return on investment in a risk management information system

Before investing in a risk management information system (RMIS), estimating the return on investment (ROI) is an important step in the decision-making process. Whether it’s your first RMIS or you’re contemplating switching systems, the costs of these system can seem very high. Determining the ROI will help quantify the business case for the investment.

Topics: risk management Insights & Opinion

TCOR vs. TCOIR: For risk managers, it's a distinction with a difference

Total cost of risk, or TCOR, is still not a widely used metric in the risk management field. I wonder why? Maybe because it is hard to derive and fully understand, and maybe it isn’t considered a fair measure of risk to an organization. Maybe a little of both.

Topics: risk management best practices