The Fear of Failure Is Real
There is a genuine fear of implementing a new system—and with good reason. Many companies have had past experiences in which they purchased or licensed a software solution that ultimately didn’t meet their needs. Particularly during the tech booms of the 80s and 90s, many insurance companies and Risk Managers invested millions of dollars in software and hardware—only to find that their solution only met 60–70% of their needs.
There are two main reasons why these conventional systems failed to deliver the expected return on investment:
- Large upfront costs and ongoing expenses
Implementing a traditional system represented a significant risk for an organization because they typically had to pay large licensing fees upfront. Additionally, the company would often need to acquire hardware to house the system, and either dedicate space in their own office or rent space in a data center. These expenses—plus costs associated installation, configuration, and maintenance—quickly add up, causing budget overruns.
- Limited functionality and flexibility
Many conventional Risk Management Systems were developed primarily for claims management, which is only one segment of risk management. Without a full understanding of the policy information (age and state of covered assets, policy limits, coverages and premiums) risk managers are only getting a partial view of their insurance portfolio and its performance.
Times have changed — and so has technology
Today, companies aren’t forced into the conventional software licensing model. Modern systems are increasingly based in the cloud and delivered through a software-as-a-service (SaaS) model. This offers critical advantages for the Risk Manager—and can help convince a skeptical CFO that this time will be different.
With a cloud-based solution like Solartis Risk and Policy Manager, you don’t pay a large upfront license fee and no hardware purchases are required—delivering immediate savings compared to a conventional system. Equally important, the system is much more cost-effective on an ongoing basis, because you don’t have to house any servers at your facility or in a data center.
These advantages deliver tangible value for the Risk Manager and the organization as a whole, but the cost and convenience of the cloud don’t tell the whole story. There’s one more critical element that is not common to all cloud-based RMIS vendors: insurance policy administration knowledge.
You need a vendor with expertise in not just technology, but also in insurance policy lifecycle and management. A common thread in many implementations is that the folks who are providing the system don’t have adequate knowledge of the underwriting process and policy lifecycle. As a result, the software doesn’t contain all of the information needed by the Risk Manager to property control his Total Cost of Risk (TCOR).
Why You Can Be Confident With Solartis
The Solartis Risk and Policy Manager platform is based on our team’s deep understanding of the insurance industry, and our implementation processes is centered on one goal: helping you reduce your TCOR.
Before we offer a solution, we’ll sit down with you to understand your business and the pain points that are driving up your costs. We’ll examine how our system can improve your risk management activities and help you perform day-to-day processes more efficiently.
We will jointly challenge all components of your TCOR:
Insurance premiums, commissions and fees
- Do your policy premiums accurately reflect your current assets and potential exposures?
- Are you nimble? Insurance offerings change all the time. Do you have the info you need to shop your book to obtain the broadest coverage at the best price?
- Do you accurately calculate premium contributions and bill your covered participants for the risks and exposures they bring to your insurance portfolio?
Claims and Loss Control
- Do you have up to date COPE data to proactively identify risk?
- Do you have the information and the tools on hand to perform and track background checks / screening of employees and volunteers?
- Do you have up to date info on all your vehicles, drivers and their vehicle usage?
- Have you considered forming a captive to not only reduce costs but to protect your assets?
- Is your administrative processes cumbersome and time consuming?
- Can some of these activities be pushed out to the stakeholders?
- Have you considered cloud technologies to reduce costs?
- Do you have the ability to easily manage policy information and details in addition to your claims activities?
Contact us today to discuss your needs and learn whether the Solartis Risk and Policy Manager is the right system for your organization.