How can you identify the lowest sustainable cost of insuring the risk?
A RMIS containing the components of TCOR can give you the insight you need to focus on items you can control. A CFO may concentrate on expenses and efficiency improvements, while a risk manager may concentrate on risk transfer and retention costs.
TCOR reports consolidate these efforts and assist you with identifying the underlying root cause of losses, spotting trends and establishing best practices with internal benchmarking. Good risk management can be promoted with a structured cost allocation program, making the TCOR more accountable and visible to your business units.
How can you use a RMIS to better track data?
A RMIS helps you obtain the right data and monitor performance of control mechanisms, which leads to improved governance. It also leads to more informed risk management decisions, which results in a targeted approach to reducing TCOR.
A RMIS also gives you an enterprise-wide view of your risk exposure and delivers critical intelligence. Data from multiple external sources can be incorporated, as can data from internal systems, such as human resources and payroll.
With a RMIS you can maintain your risk information in an efficient manner and have a complete picture of your business at your fingertips. With the increased focus on driving down the cost of business, more and more companies are benefiting from using this solution.
What are the benefits of tracking your TCOR and risk management data?
Using a RMIS gives you greater awareness of your risk and more control of it, which results in a 3 to 10 percent savings on TCOR. You can see this in:
- Improved insurance premiums and better quality data presented to the market.
- Efficient renewal processes through centralized data in a consistent structure.
- Development of loss prevention schemes through discovery of loss history trends.
- New workflow efficiencies, such as reduction of time for settlement of claims, issuance of new insurance policies, or record searches.
Better quality data can help you identify innovative strategies for reducing costs. As businesses tighten their belts and start to make difficult decisions, you decide whether your company can afford not to control your data and drive down TCOR.
Anne Sherwin is a vice president and senior account executive at Aon Risk Services Central, Inc. Reach her at (412) 594-7534 or [email protected].