January 31, 2017

A leading UK insurer recently trialled Risk Solved as a proof of concept, and reported an anticipated £900,000 per annum saving on risk management surveying costs through the use of Risk Solved.

Innovative Analytics

A leading UK insurer discovered some exceptional insights and immediate savings that could be made after trialling Risk Solved for its motor fleet book.

In common with most of the market the commercial motor book in our client was underperforming causing them to make it a focus for underwriting improvements.  After a procurement process for a risk management solution for the whole business including personal lines, SME through to corporate, Risk Solved was selected for a proof of concept on the corporate motor fleet book.

The software was rolled out in a matter of days to over a dozen users across underwriting and risk management functions.  A large sample of client, broker and policy data was loaded after which the motor risk managers started using Risk Solved to capture actual survey data with the on and offline tools and to mimic client self-surveys.

An existing risk management analysis expert learned quickly how to produce reports and management information from Risk Solved, allowing the proof of concept team to demonstrate the power of Risk Solved to interrogate and revolutionise their understanding of client risks to the CUO and other senior stakeholders.

We couldn’t have asked for any more. RSL were always very responsive.

The risk managers reported a two man hour saving per survey for their large survey team, which equates to over £900,000 saving per annum, so the POC allowed our client to construct a business case with a very low risk business case showing return on investment in year one and a further significant saving within the first year.  They haven’t yet made a decision whether to redeploy the budget and almost double their number of surveys per annum or pocket the saving and improve their expense ratio.

Risk managers were pleased with the implications of making their role more specialist and gaining access to mobile tools that will enable greater efficiency.  By automating the survey process, and giving guidance to untrained clients and non-specialist field surveyors, they foresee the opportunity to centralise skills and knowledge of specialist risk types and overcome the looming retirement problem affecting many insurers’ risk management teams.

Risk managers are pleased with the potential to use self-surveys to validate individual driver training and compliance such as driving licenses, especially for clients’ grey fleet.  This is a hitherto untapped source of valuable data which gets to the heart of many clients’ genuine appetite for risk management and attitude to risk and compliance.

The example reports built for the CUO gave a good insight to the type of intelligence it’s possible to get from Risk Solved.

Underwriting managers were eager to extend the POC to gather enough data to allow them to start benchmarking clients, trades/professions, brokers, underwriters and risk managers.  They anticipated significant improvement in loss ratios as soon as they can intelligently select risks on renewal or even pre-inception.

Our client now has to decide whether self-survey data can or will be used in assessing claims.  Before this can be concluded, the compliance, legal and other teams need to form a common view with risk management and claims teams on the admissibility of self-surveys and reputational impact of relying on them to potentially refute claims.

The full roll out of their risk management solution will allow our client to risk manage classes previously not covered, “adding quality and insight to [their] underwriting decisions.”