Strategic Thought

RM in your Role >

 Insurance Department

The goal of the insurance department is to ensure that the company has the right levels of insurance in place to protect it and its stakeholders. It must do this at an affordable price that enables a reduction in the "Total Cost of Risk Management" as well as maximizes capital efficiency.

"Total Cost of Risk Management" includes insurance policies, self-insurance and risk mitigation. Our customers now have the ability to significantly reduce their annual premiums and their insurance providers can therefore be more competitive in offering policies.

Here are some of the benefits that an Enterprise Risk Management system can deliver to the Insurance Department:

• Use ARM to demonstrate a robust, rigorous, and efficiently deployed risk management process. ARM can show how you have a grip on your business risks, and why you are confident in your ability to manage the right risks. Based on this you can negotiate a discount with your insurance provider.
  
• ARM enables you to show your insurance provider the scope of your risks; those that you are comfortable in self-insuring and mitigating internally, and those that you really do need a policy for. You can significantly reduce your annual premiums as a result.
• You can see which risks occurred in the past and which have not yet occurred so that you are able to make informed decisions on the level of coverage required.
  
• You can work with your provider on the real-time and thorough data that you have, looking at insurance products that cover categories of risk rather than coverage for similar risks multiple times.
• Your can impress your insurance provider with the level of detail that you are able to show, and the documented and deployed framework that you have in place. This will allow the provider to be comfortable in their overall ‘client profitability’ while being able to offer a discount and increase their competitiveness.