Over the past 4 years, 3 of the 4 major Risk Management Information System (RMIS) vendors have been acquired by private equity investors. That amount of consolidation, in what was previously a very stable market, really is astounding. What does vendor consolidation mean for RMIS users? And more importantly, what does it mean for you and your team?
The impact of RMIS market consolidation is almost certain to rank low on any risk manager’s list of concerns. There are more critical issues on which to focus—renewals in a commercial property insurance market that continues to harden, adequately evaluating and insuring against cyber risk, taking a more proactive approach to loss prevention, or developing an ERM program, to name just a few.
Those who depend on their RMIS for basics such as consolidating a handful of TPA feeds and reporting on claims data, RMIS mergers and acquisitions may barely register. For risk managers and their team members who use their RMIS on a day-in and day-out basis, the potential effects of consolidation—in particular, the ability or willingness of a RMIS vendor’s owners to invest in improvements in technology and support, rather than preparing for future sale—are worth considering.