Turning data into intelligence: A practical guide to a more efficient risk transfer experience
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Summary
- Transformational shifts facilitated by data-driven insights and platforms are reshaping how risk management functions allocate their time, emphasising value addition over administrative burdens.
- With advances in technology, there are now many solutions available to the market that can help you consolidate, aggregate, reconcile, and report on all your data in a single place, regardless of the asset source, location, or type.
- Solutions such as Insurwave’s data management platform have helped many risk managers gain unparalleled visibility and support when making important transfer decisions.
- Data is a powerful tool for any business, but especially for those that deal with uncertainty, complexity, and volatility. By prioritising improving your understanding of your data, this can, in turn, lead to more accurate decision-making and ultimately a competitive advantage.
Amid heightened scrutiny of submissions, risk managers find themselves in a competitive landscape for limited capacity, making the significance of high-quality data more crucial than ever. In this context, a company's data, coupled with its capacity to comprehend and articulate risks, has become indispensable in deriving value through strategic risk management, risk retention and risk transfer. This capability plays a pivotal role in mitigating the organisation's exposure to market fluctuations.
Transformational shifts facilitated by data-driven insights and platforms are reshaping how risk management functions allocate their time, emphasising value addition over administrative burdens. Equipping risk managers with these tools empowers them to stay ahead in the ever-evolving risk landscape, enabling them to deliver substantially greater value to their organisations.
However, this process cannot happen overnight. Read on to learn how you can improve your risk transfer strategy using our following guidelines.
Take control of your data
Many insurance professionals are often hindered from achieving the best results due to disparate data sources and an inability to consolidate them. However, with advances in technology, there are now many solutions available to the market that can help you consolidate, aggregate, reconcile, and report on all your data in a single place, regardless of the asset source, location, or type.
Solutions such as Insurwave’s data management platform have helped many risk managers gain unparalleled visibility and support when making important transfer decisions. Lars Henneberg, VP, Head of Risk Management, A.P. Moller-Maersk used Insurwave’s platform to help centralise his organisation’s data so when interacting with insurers and reinsurers, he had access to credible and authentic data points to paint an accurate picture of their risk.
By taking these actions, Maersk built a more efficient risk financing structure underpinned by better systems support and, most importantly, a good understanding of their data.
Automate the admin
Risk managers often highlight the amount of time spent performing administrative tasks that could be much better spent elsewhere. By obtaining the correct data management tools, risk managers can automate these processes and better optimise their focus toward value-adding activities.
For example, through machine learning-enabled mapping to a data standard, less time is spent on collecting data and more time is spent on understanding it. In addition to this by using enrichment providers and defining rules for outliers, completeness and accuracy, the data quality can even be improved. By having all that data in one place, risk managers can provide their risk summary dashboards with richer insights based on how insurers would view the risk.
At Insurwave, we believe that increased operational efficiency can be achieved for risk managers, including automatic alerts offering the ability to focus on the key risk events and being able to make faster decisions to mitigate risk.
Using these systems helped Maersk automate many processes previously done through manual transactions. At the same time, this allowed Lars and his team to spend more time ensuring they understood the risk and undertook the data mining required.
Set a clear data-backed risk management strategy
Insurance will be one element of this, and the use of data needs to support your overall risk management and transfer strategy. You may have a strategy to review and optimise how much insurance you buy versus how much risk you retain, so prioritise asset data which will help you make this decision. Similarly, in a loss scenario, think about how you would prioritise getting data to support your risk management decisions.
Ultimately, it doesn’t matter how vast a data set you hold – if the quality of data is poor, the insights you get from it won’t be much better. Accurate data is essential for risk assessment, underwriting, pricing, and claims processing and good data governance helps maintain data quality and accuracy by implementing standardised processes for data collection, validation, and maintenance.
Data is a powerful tool for any business, but especially for those that deal with uncertainty, complexity, and volatility. By prioritising improving your understanding of your data, this can, in turn, lead to more accurate decision-making and ultimately a competitive advantage.