Developing a business case that shows ROI from a new insurance management system can be challenging. The potential savings and operational improvements are significant, but it is difficult to quantify all of the costs you avoid by implementing a new system—including not only IT staff and infrastructure, but also administrative and opportunity costs.
CEO Nick Richardson explains how a new insurance management system can help you reduce costs and administer you entire portfolio more effectively.
Eliminate Hard Costs: Software Licenses, Infrastructure, and IT Staff
If you have an existing insurance management system, you are probably paying for components and services that are not required in a cloud based solution. These costs include the infrastructure needed to run the application, an operational support team to manage it, as well as disaster recovery provisions and services. These items carry a significant price tag that is no longer required.
Manage Your Entire Insurance Portfolio—Not Just Claims
Conventional risk management information systems (RMIS) typically have very limited capabilities related to managing insurance policy data, because they were developed in the claims processing environment. Risk Managers today should be searching for comprehensive insurance management systems that support all policy lifecycle activities and imported claims data from their or their Third Party Administrator’s RMIS.
Having policy data and administration functionality allows you to significantly reduce costs—and help quantify the value of purchasing a new system. Savings include:
- Data-driven negotiations with brokers and insurance companies that result in the best coverages at the lowest possible premiums.
- Trend analysis and total visibility into how premiums, exposures, and administration contribute to TCOR—enabling the Risk Manager to focus on key cost drivers.
Create Efficiencies: Reduce Administrative Tasks and Activities
Managing risk and policy information is a critical responsibility, but processing vast data sets in the conventional way is slow, time-consuming, and prone to error. Ideally, stakeholders should be entering their information through an insurance management system designed for distributed processing. Having the covered participant enter their own information directly into the system is the best way to ensure that policy, risk and insurance data is accurate, complete, and up-to-date.
With all of this information in one system, the Risk Manager can quickly generate internal and external reports, extracts and charts—and provide instant access to the desired recipient (i.e. insurance carriers, CFO, board members, covered participants, auditors).
Reduce Total Cost of Risk With Solartis Risk and Policy Manager
Solartis Risk and Policy Manager can help you manage total cost of risk (TCOR) by addressing all of the cost factors discussed above. Delivered on a software-as-a-service (SaaS) model, this cloud-based insurance management system eliminates many of the costs associated with older-generation systems—including software licensing, internal IT costs, data center use, backup and disaster recovery operations.
In addition to low operating expenses, Solartis Risk and Policy Manager provides the deepest and most comprehensive insurance management functionality available today—giving you easy access to all of the data needed to support your broker, underwriter, and covered participants throughout the entire insurance policy lifecycle. This helps you secure the best coverage at the lowest cost.
Automation and self-service capabilities generate further savings through increased administrative efficiency. Stakeholders can view and update their own data, create documents, and enjoy seamless collaboration. Data is validated automatically, and powerful reporting capabilities enable you to leverage your information to manage TCOR as effectively as possible.
Interested in learning more about how Solartis Risk and Policy Manager can reduce your operating costs and make you more competitive in the insurance marketplace? Contact Solartis today!