For many risk managers out there, now is when you are looking at your insurance renewals ahead of the 1st January. Did you realise that this is also a great opportunity to consider your risk management needs?
If you don’t yet have a robust risk management information system (RMIS) in place, like Ventiv’s RiskConsole Advanced, now is the time to think about how this could help your company meet its business objectives over the next few years, and beyond. Quite often a RMIS is seen as a huge business expense that gets removed from the budget to cut costs every year. What business owners often don’t realise is the number of benefits that sophisticated risk management can have.
As a risk manager it will be your responsibility to manage the company risk portfolio and reduce the Total Cost of Risk or even take advantage of opportunities. If you are frustrated that you don’t have the right tools to help you do your job better, then talk to your broker.
When you discuss your insurance requirements for the year ahead with your broker, make it clear that your priority is to get funding for a new RMIS. There is a good chance that you will be able to part fund a new RMIS with a subsidy from your insurer. If your broker understands your requirements, they will be able to focus on this as part of your proposed insurance requirements when they go to the market.
It is a priority for insurance companies to ensure that they fully understand the risks that they are underwriting. It is in their best interest, and yours, to better understand your risk exposure to avoid inefficient risk transfer and inappropriate coverage.
When an underwriter participates in your risk transfer strategy, they will need to be able to justify why they have written it at a competitive price and evidence that they’ve fully understood the exposure. If you can prove that you have good risk management practices and are working to reduce your level of risk with the help of an RMIS, then they can be assured that you meet the criteria for their risk appetite. Typically, RMIS users will have better management information within their insurance submission and can evidence that submissions have been collated and approved in accordance with the Insurance Act.
For a company with a total annual insurance premium spend of £3-5m, a bursary of just 0.5% of premium spend could significantly offset the implementation costs of a RMIS. Indeed, larger corporates with a spend of over and above £10m would likely see the cost of their Annual License fee fully covered for all but a broader system, covering multiple disciplines. This investment would in effect be funded by your risk partners as a shared premium discount.
To find out how RiskConsole Advance could benefit your business and enable you to put forward a proposal to your broker, speak to a Ventiv specialist. Start saving time, money and reducing your risk – start a conversation now.
Nov 5, 2018
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