By David Tweedy
Imagine a large risk pool with an outdated RMIS system requiring an intense number of manual processes. In addition, there are many Excel and Access databases and stand-alone, or siloed, systems.
Without full integration, new coverages and updates take weeks, instead of minutes. Claims data is everywhere and not aggregated and therefore, servicing members to their expectations is a challenge. Just a few senior team members at the pool know all the workarounds and band-aids they’ve been able to patch to stay afloat over the years.
Their fear? An insurance company will come in and make members an offer they can’t refuse and the large, established risk pool will lose market share.
Does this sound familiar? Could this be your pool? If so, it’s time to think about a new RMIS.
Technology: The Great Differentiator
In 2022, your RMIS can make the difference between your pool’s success or failure. In our Amazon generation, pool members are looking to reduce the time it takes them to file a claim and see it through. Even more, they seek transparency. Many are looking for more than just an answer in a day or two, they want a quick, positive and knowledgeable experience every time they interact with your pool.
Can you provide your members with this?
In these cases, technology is the differentiator. A risk pool that relies on state-of-the-art technology to communicate with all levels of the pool — from management to agents to members — clearly demonstrates its value.
Today’s risk pool must meet the needs of their members to keep their business. A robust RMIS can help. Not only does a modern RMIS aggregate and validate data, but it also reduces the number of manual processes required on the back end to make an update and offers the ability to make updates easily. Ultimately, this provides the end user with a faster, more transparent and user-friendly experience.
Here are the top 3 qualities that pools should be looking for in a RMIS:
- Speed. When a member requests an endorsement or coverage change, they want it to go into effect instantly, not days or weeks later. Can you reduce the time it takes to change a coverage, add an endorsement, a property or vehicles to a policy? Think: adding a swimming pool or playground coverage to a portfolio — maybe from an entity that was previously self-insured — they want to be able to do it fast. If your RMIS requires significant back and forth or manual data entry in spreadsheets, that could necessitate a 20-step process to get even a simple endorsement done. A modern RMIS, will bring a 20-step process goes down to three. The time frame goes from weeks to minutes and accuracy is improved 100x.
2. Data. A member’s board of directors will want to know:
- Their loss ratio
- What reinsurers think about their high frequency of claims
- The impact of COVID-19 on their program and their claims
And they want to see that data real-time. Accurate data collection is key to analyzing and learning as well as predicting problematic claims ahead of time. Whether it’s looking back at the data to determine why claims increased during a specific period or relying on artificial intelligence to flag claims that are likely to be problematic, manipulating and analyzing data is a necessary component of risk management.
Furthermore, modern RMIS systems will be able to predict problematic claims through AI. Advance knowledge of what will be a problem for the municipality, being able to predict the coverages that are necessary in the future, this is the type of information is possible when you have good data about your current insureds.
Some RMIS systems now have built their claims platform with AI built in. Under certain conditions if certain factors are present, a claim can be flagged as a potential problem. The system will trigger and alert pool management to this so they can keep board and insured informed.
With reliable data and a RMIS that can perform accurate analysis with your data, all of the above is possible.
3. Integrated reporting. The data is just the first step. Then, it’s the integrated RMIS that provides the analysis of the data and brings it all together. For members, the most important data relates to:
- Exposure estimates
- The cost of onboarding
- Renewal rates
- Cost loss ratios
Robust RMIS technology that can provide all that data with the click of a button will win out against manual processes every time — and pool employees don’t have to waste time crunching numbers.
A Step Toward the Future
Remember that star employee who was holding the entire risk pool together with sticky tape and a bandage? It takes them nearly an hour to make a change in the system — and that’s when the system doesn’t crash halfway through.
The right technology can not only support them in their job, but it can help risk pools meet and even exceed the expectations of risk pool members. Overall, adopting an integrated RMIS leads to improved accuracy, greater efficiency, and increased member loyalty.
For more information on choosing the right RMIS for your risk pool, schedule an Inquiry Call with David.