Origami’s tips, drawn upon findings from a newly published “Risk Management Technology Survey” by Business Insurance®, show an uptick in expansion and upgrade of RMIS technology
CHICAGO, April 8, 2020 – As more risk management executives look to expand or upgrade their risk technology and software, Origami Risk, the industry-leading risk, safety and insurance Software as a Service (SaaS) technology firm, offers five tips to help with their decision-making.
Here are the tips from Origami, which also draws upon findings of a newly published “Risk Management Technology Survey” by Business Insurance® of 275 risk management executives.
1. Be strategic about any investments in risk technology.
Among risk management executives in the Business Insurance survey, nearly 36% increased their spending on risk management technology in 2019. In some cases, survey respondents increased spending by more than 50%. The average spending on technology rose by 8% to reach $234,589.
“With significant dollars at stake, you need to be strategic about making any new investments in technology,” advises Earne Bentley, president of the Risk Solutions division at Origami Risk. “Besides focusing on your most pressing immediate needs, consider how the right technology might benefit your organization in multiple ways. Often, the more ways you can leverage technology, the better your ROI.”
2. Seize the power of risk management technology.
“Risk technology has made startling advances in recent years,” Bentley notes. “The most robust systems now support a full spectrum of complex risk management activities, including enterprise risk management (ERM) and governance, risk, and compliance (GRC).”
Indeed, while 79% of those in the Business Insurance survey use risk technology for incident reporting and claims management, 39% use it for renewals and data collection, 22%, for policy management, 21% for ERM, 19% for premium allocation and calculation, and 13% for asset management.
3. Recognize the need for system versatility.
“Today, risk managers need to respond to ever-changing situations as exposures facing their organizations evolve and grow increasingly complex,” Bentley observes. “As a result, you need to choose technology that is versatile to deliver new functionality to meet your needs, scalable to address changes to your organization and data/analytical needs, and flexible to accommodate different users, formats, and accessibility requirements, including desktop, laptop and mobile devices.”
RMIS features those surveyed like most include: “simple to use/user friendly” (56%); “accessible online/web-based” (53%); “customizable for special/specific needs” (43%); “single point of reference for tracking, repository and data extraction” (40%); and “low-cost/cost effective” (37%). On the other hand, they most disliked: “analytics or forecasting capabilities” (38%); “lack of easy reporting functions and features” (29%); “lack of sophistication” (27%); “not customizable/flexible” (25%); and “outdated” and “cost” (25% each).
4. Know the difference in technology.
“Legacy risk management systems typically were server-based, which made them costly to install and update; they were also inflexible and became outdated quickly,” notes Bentley. “Newer, cloud-based Software-as-a-Service systems are updated automatically without any service disruption. These systems also readily accommodate changing needs and the development of new and expanded functionality.”
Among risk executives surveyed, 32% use server-based systems, 25% use cloud-based systems and 37% use a combination of the two. Meanwhile, many are looking to ramp up how they’re using their systems. While 12% currently use big data modeling, 15% plan to do so in the next 12-24 months and another 28% are in discussion to do so. At the same time, 4% are using artificial intelligence, but 14% plan to use AI in 12-24 months, and 18% are in discussion to do so.
5. Exercise diligence in changing risk management systems.
Of the risk executives surveyed, 27% are considering a change in RMIS technology in the next 12-24 months.
“When shopping for a new system, don’t leave any stone unturned,” Bentley advises. “Make sure the technology will meet your current needs and offers the versatility to meet your needs in the future. Find out about customer support, implementation timetables, service teams and other resources. Ask for references and be sure to check them.
“Finally, watch the small print in contracts. For example, check who ‘owns’ the data: of course, it’s your data, so you should own it. However, some providers don’t see it that way. If you change systems, they charge you for any data you need returned to you. In some cases the costs for retrieving your data can run into the tens of thousands of dollars and more.”
According to Business Insurance, the survey “was conducted between Jan. 30 and Feb. 27 (2019). The results, reported in the magazine’s April 2020 issue, are based on 275 respondents who indicated they are corporate insurance buyers/users and are involved in their company’s risk management technology purchase decisions.”
About Origami Risk
Origami Risk is a leading provider of integrated SaaS solutions for the risk, safety, and insurance industry — from insured corporate and public entities to brokers and risk consultants, insurers, third party claims administrators (TPAs), and risk pools. Highly configurable and completely scalable, Origami Risk delivers a full suite of risk management tools and insurance core system solutions from a secure, cloud-based platform accessible via web browser and mobile app. Visit origamirisk.com or contact Origami at email@example.com.