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How Risk Pools Can Use Technology to Adapt to Market Changes

The pooling community includes innovative services, thought leadership around best practices, and tools for members to respond to changes in risk outlooks. Every organization has tough decisions to make when forced to pivot, especially today. Upgrading technology investments can transform challenges into opportunities for innovation while streamlining a path to more business value.

For example, consider the problem of transitioning an entire workforce to working from home. With technology, organizations can address this issue as a disciplined exercise rather than a panicked reaction. This shift has already proven itself by helping organizations adapt quickly to emerging demands.

Business Interruption Cases Are Settling in Favor of the Insurer

The court cases related to COVID-19 and business interruption coverage are starting to settle in favor of the insurer, primarily in the U.S. and Europe. In a recent landmark ruling in the U.S., a Michigan Circuit Court Judge ruled in favor of the insurer in a case where a restaurant management company was seeking business interruption coverage due to government shutdowns related to the coronavirus.

The court deemed that the loss of business income sustained while business operations are suspended must be caused by the direct physical loss of or damage to a property. Essentially, there is no property damage when restaurants are prevented from opening due to public health restrictions.

Insurance organizations are right to keep a close eye on these court cases, as they can provide insight on how to take action while minimizing future threats. As companies reopen for business, insurance professionals have more potential risk outcomes to consider. Existing members will likely want to make changes to their coverage moving forward to prepare for future business interruptions.

Preparing for What’s Next

As business begins to resume operations as usual, it’s important to think strategically about what may happen next. When evaluating your current approach, consider these questions:

  • Are you prepared for the business continuity of your members for the duration of the current pandemic and any future crisis?
  • Do you have accurate reserves?
  • Are you running predictive analytics?

While none of us may have experienced a global pandemic before, we have certainly seen an increased demand for efficiency in the insurance space in light of recent events. Spreadsheets and manual forms may have been sufficient in the past, but they are not ideal in our current environment.

Evaluating Technology Solutions

We understand that adapting new technology is a big decision involving many stakeholders. We will post future blogs on starting a technology search to help you navigate the process. For now, these are the first questions we often hear from our prospects:

  1. What problems can we solve?
  2. How fast can we solve them?
  3. Will it scale to the size of my organization?

We can address these questions with technology that drives productivity and automation in today's rapidly evolving market. 

What problems can we solve?

Technology is a great method of adapting to the demands of an ever-changing risk and insurance landscape. Many organizations no longer want to use spreadsheets and legacy systems to respond to emerging data trends.

THE COUNTY OF LOS ANGELES and the INDIANA PUBLIC EMPLOYERS' PLAN both represent stories of clients who are in a better position because of innovative technology. They have tools that enable a remote workforce and are using risk and claims technology to ensure business continuity and safety best practices, while accurately and quickly providing real-time data discovery. The solution helps pool administrators automate and improve their most crucial functions, including purchasing insurance and accepting the transfer of risk from members.

How fast can we solve these problems?

According to the recent Forbes survey of CEOs on 2020 Fortune 500 List, 75% think that the current crisis will affect the pace of technological transformations.

Depending on the sophistication, solutions can often be implemented in their base format within weeks. With an experienced provider and an agile approach, you can quickly achieve your desired functionality with a staged project aligned with your vision.

Will it scale to the size of your organization?

We offer solutions that meet the budgets and needs of organizations ranging from one employee to thousands of employees.

With scalable technology, you can:

  • Spend 60% less time gathering and managing renewal data.
  • Realize operational savings of up to 75% to produce policies and certificates.
  • Save 20% or more in overhead costs with improved staff efficiencies.

Learn More

If you’d like to take a deeper dive into how technology can help risk pools adapt quickly to market changes, check out my recent video on LinkedIn and let me know what you think.

Jul 29, 2020

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