3 Things Every Brokerage CEO Should Know About Risk Management Information Systems
Oct 04, 2022
Risk management has become exceptionally challenging in light of staffing and resource constraints, a frustrating spectrum of new loss exposures, and volatile financial conditions. These phenomena have significant downstream consequences for the insurance agent or broker as well.
With problems seemingly on every front, the agency and brokerage CEO needs exacting insight into current market dynamics. Such insight is readily available with respect to insurance, but perhaps less so on the technology side. Here are three big-picture points to help fill that gap.
Point 1: Technology can be the engine for revenue generation
There is no risk management operation which has all the knowledge and resources it could continuously benefit from. Never underestimate the need for even the most sophisticated risk management group to secure outside assistance and insight. This represents a huge opportunity to sell value-added services.
Perhaps no area of opportunity is as compelling yet underutilized as cutting-edge risk management analytics. By helping insureds to see their business in new and creative ways, the agent and broker create a direct path to improved claims experience and lower ultimate costs. Enlightened insureds are willing and eager to fund initiatives with proven and demonstrable paybacks.
Point 2: Protect your company from annual price shopping
The agent or broker is usually a critical extension of the risk management department if not the de facto risk manager. But all too often the agent or broker is nonetheless commoditized in the eyes of the insured’s decision makers. What’s needed is a way to embed services in the customer’s operation so that value is recognized and a change in providers becomes difficult or unthinkable.
By being the analytics engine of the risk manager, the agent or broker establishes a recurring stream of brand validation, a direct connection to the operation of the insured’s business, and a service delivery model that competitors may be unprepared to compete against. In the eyes of the buyer, the agent or broker is thereby far more likely to be regarded as a consultant rather than a price-shopped transactor.
Point 3: Competitors are already succeeding with analytics
While the world of broker-provided analytics may be a relatively new and not yet universal way of doing business, things are changing quickly. Outsourced analytics are witnessing impressive growth trends among brokers and the technology firms that supply them. What if one of a broker’s flagship accounts is enticed by a competitor offering this service?
The new reality is that outsourced analytics are proving their worth to both the broker and insured: as a means of gaining pinpoint insights into critical loss drivers, as a far more dynamic and cost-efficient way of rendering a high-value service, and as a powerful competitive differentiator. The agent or broker that hasn’t pursued this avenue risks being left behind.
Aclaimant is a cost-efficient way for brokers and agents to establish a market-leading presence in difference-making analytics, without risk of channel conflicts, unwanted competition, or needing to build something from scratch. Many leading agents, brokers, TPAs and carriers have turned to Aclaimant to quickly gain a competitive edge and enhance their brand. We’d be happy to provide you with details of how we have helped these service providers succeed with cutting-edge analytics.
To learn more about the Aclaimant platform, schedule a free demo now.