Driven by the COVID-19 pandemic, businesses and public entities increased their reliance on risk management technologies, as vendors expanded their offerings to meet their needs.
A survey of 1,100 risk professionals found that 38 percent of the respondents increased their use of risk technology during the pandemic, while 56 percent saw no change in their utilization and 6 percent used risk technology less.
The survey was conducted by risk-technology consultant Redhand Advisors and the results are published in the annual RMIS Report that also includes feedback from 32 risk technology vendors.
Patrick O’Neill, president, Redhand Advisors, co-author of the report, noted that from their initial focus on claims management and administration, risk management information systems (RMIS) have expanded their functionality to address more risk management, insurance and safety-related needs.
Among the risk professionals surveyed, 76 percent rely on their RMIS for claims management, 55 percent for claims administration, 37 percent for incident intake and management, and 31 percent for managing insurance renewals.
Meanwhile, growing numbers of risk professionals now also use RMIS for policy and program management (28 percent), environmental health and safety (20 percent), benchmarking (20 percent), exposure and asset management (19 percent), enterprise risk management or governance, risk and compliance (18 percent), and captive and pool management (12 percent).
According to the report, advances in technology, particularly the integration of artificial intelligence, are helping RMIS bring new efficiencies to the claims process, including:
- Enhanced data entry using scanning technology and intelligent document processing;
- Infusion of AI algorithms to deliver more accurate valuations and reserving practices;
- Wider application of advanced analytics to identify claim characteristics that may help prompt faster settlements;
- Creation of low-code and no-code platforms that facilitate rapid integration with an organization’s human resources, payroll, enterprise risk and other legacy systems.
“As they look for the fastest route to meet the evolving needs of their clients, many RIMS vendors are expanding capabilities by integrating third-party solutions,” said David Tweedy, senior advisor, Redhand Advisors.
These third-party services include cybersecurity, catastrophic risk, artificial intelligence, and analytics, all of which are being integrated into various RMIS platforms, according to Tweedy.
The survey found most risk professionals prefer to not rely on a single vendor for all their needs, with 84 percent favoring “best in breed” solutions or having their RMIS integrate with third-party tools. The authors says that’s prompting RMIS vendors to form partnerships and alliances with other providers.
Source: RMIS Report
Was this article valuable?
Here are more articles you may enjoy.