Is Your Insurance Management Reactive or Proactive?
The ability to proactively answer questions about your insurance programs will not only increase your productivity but will lead to more strategic conversations with your broker. The challenge is in knowing where to start. It helps to recognize the problems with the most common tools used to manage insurance information, and what you need to do to change the conversation from reactive to proactive.
For many organizations, managing policies falls into three categories:
1) Using a file directory setup or a document management system to store the electronic versions of your policy binders. While it’s good to have an electronic record of your policies, this setup makes it difficult to find the answers to basic questions as you need to find the right policy, find the right section, and determine if you do indeed have the right coverage. This sometimes can take more than an hour per claim if you do not know exactly where to look.
2) Tracking high-level policy details within spreadsheets. While this currently is the number one way many companies track their policy details, this comes with various problems. First, spreadsheets may contain many errors due to formatting inconsistencies, poor cutting and pasting, lack of version control, and other human errors while transferring the data. Also, the maintenance of the spreadsheets can be cumbersome with potentially little efficiency value in return. Additionally, if you utilize multiple brokers for different lines of business, these spreadsheets might be in different formats.
3) Relying on broker systems. While this takes some of the issues off the risk manager’s plate, this information is decentralized from all your other information that you need to track, such as your claims and/or values data. If you use multiple brokers, you only have a part of the picture.
And the pitfalls…this information is often disconnected from all the other information that risk managers need to evaluate on a daily basis. Many of the current state setups do not have the ability to connect meaningful policy data directly to claims data, values data collected during submission processes or even premium allocation workflows that many organizations need to perform.
Our latest whitepaper, “Is Your Insurance Management Reactive or Proactive?”, explores how you can begin to change the conversation around your insurance programs.