By David Tweedy, Senior Advisor, Redhand Advisors
Risk pool operators are often hesitant to consider additional technology for their business operations. And rightfully so.
With so many snapshots in time to keep track of, it’s seemingly easier to maintain the status quo with the legacy system you’ve already got in place. You may even feel that your spreadsheets or pen-and-paper system are a well-oiled machine.
But are they really?
In today’s fast-paced world, with information changing on a dime and more data available than ever before, it’s no longer acceptable to spend hours or days calculating costs or looking up historical claims data. Like patients who seek their test results immediately, or shoppers who research before making a purchase, risk pool members also require an easy way to track their risks, see costs in real time, and understand where a claims resolution is stalled.
Benefits of RMIS Technology for Risk Pools
When information is available online 24/7, with just a click or swipe on a mobile device, every interaction between the risk pool administrators and its members is critical. The need for risk pools to go digital is often just as important to members as it is to administrators.
The top benefits of a RMIS system for risk pools are:
- Integrated and automated work. A RMIS for pools automates the key functions of a pool – claims administration, underwriting, safety/loss prevention and membership communication – through a single, secure portal. In the past, many pools had to piece together separate systems for claims and underwriting (most often, through Excel spreadsheets), as well as a loss prevention/safety system to provide the same services an insurance company offered. No longer. Today’s state-of-the-art pool RMIS systems combine all of these functions into one.
- Improved communication. Administering a mini-insurance company with multiple stakeholders, from town managers or mayors to city HR teams, finance directors and the pool’s board of directors isn’t easy. Solid communication is a major component of the job. Imagine if some of that communication could take place digitally, even automatically? How might that change the day-to-day of your team’s workload?
- Enhanced data availability. Risk pool members want immediate access to their data. They want to see their information in real time, whether it’s policy costs, deductibles, or underwriting rates. They want reports on how well the pool is doing for them. Individual pool members are already familiar with automated risk management techniques from their personal lives – for example, an automated stop on a credit card when something unusual is purchased, or the chatbot that answers questions on a website. They’re soon going to expect the same from their risk pool administrators. That is, if they don’t already.
- Best-in-class insurance and services. Pools were originally created as an alternative to an often unstable insurance marketplace. By focusing on the specific needs of municipalities and related entities, a pool can provide the type of coverage and related services that are needed. Having a similarly focused RMIS for pools can leverage those strengths by providing quick and reliable information to pool executives and the membership such as benchmarking data, useful loss control strategies and total cost of risk (TCOR).
Next Steps: Don’t go at it alone
Investing in a RMIS solution for your risk pool can help improve your business processes, increase efficiency and automation, and demonstrate that you have the right solution for pool members.
But using a generic RMIS won’t cut it. Your risk pool is sophisticated and has unique exposures, from fleet risk to personnel exposures as well as facilities to update and manage. RMIS systems for risk pools must be configured specifically to match the pools’ needs.
When was the last time you took a look at an RMIS system for pools? If it’s been a while, you’ll be surprised at how many new tools are out there and how sophisticated they’ve become. Working with an expert who understands all the options and can help you identify what’s best for your specific risks is a first step to achieving success – digitally.
For more information on choosing the right RMIS for your risk pool, schedule an Inquiry Call with David.