Risk is everywhere. Managing risk is top of mind for leaders of all organizations, but properly assessing risk, managing it, and planning for outcomes in this era of instant information can be extremely challenging.
With an abundance of data available at the tip of many organizations’ fingertips, the role of data analytics in risk management has never been greater than now. But this abundance of data can create confusion and make it difficult for organizations to know where to begin and what to predict. Understanding what tools and data analytics trends in risk management are available can dramatically reduce your organization’s risk while saving you time and money.
Below are the top five data analytic trends in insurance risk management that your organization should be using to better manage its risk.
1. Add Geospatial Data to Your Risk Management Mix to Plan For Disaster
The abundance of geospatial data can help companies anticipate and calculate incidents of inclement weather patterns or political instability with the proper usage of data. By layering geospatial data over your existing properties or future acquisitions and using it to review historical trends and create predictive insights, you can better predict future outcomes and plan for disasters. Understanding your assets' locations and overlaying weather and other third-party data will allow you to quickly and easily assess your organization’s exposure, in addition to creating visualizations to better understand the data and its risks.
2. Plan For Workers’ Compensation and Workplace Safety
Workers’ comp can come with a bevy of compliance needs and claims complexity, with many jurisdictions having complex rules for filing and maintaining claims. But you can streamline the administration of workers' compensation claims by using third-party data. Whether it's assessing the approximate time an employee can be out or leveraging geospatial data to zone in more focused location-oriented insights within a specific property, your organization can better plan its insurance risk management in the realm of employee safety and workforce interruptions. Assessing your workers' compensation data can allow you to locate high-cost claims early and secure accuracy and clarity in your reporting to regulatory bodies.
3. Use Data to Pick the Right Insurance Policy Coverage for Your Organization
It's easy to buy more insurance coverage than you actually need, so reviewing your historical insurance coverage and usage is a critical component of policy purchasing and renewal. But understanding your company’s prior needs isn’t the only element of consideration. In the arena of risk management, predictive analytics can uncover trends in the operations and employee makeup of your company, helping you identify the appropriate levels of coverage for your most frequent and expensive claims.
Centralizing your policy data to manage the entire lifecycle of a renewal in a single policy management software platform helps your organization more cleanly and effectively administer your policy and better handle policy renewals.
4. Effectively Negotiate Better Insurance Premiums
You can negotiate the best rates with insurance providers for your company and clients by effectively utilizing empirical data about your industry and comparing it against current third-party data. Through the compilation and analysis of multiple data sources, you can measure your total cost of risk for a better return on investment, while allowing for quicker underwriting. Better leveraging of active, timely risk data created by your field users will help you reduce time spent gathering information for renewals, even cutting down on times to review incidents.
5. Streamline Administrative Duties With Better Data Usage
Given the breadth of areas risk management can encompass, tedious manual administrative work can often eat your team's time, so it’s critical to identify efficiencies wherever possible to ensure the best risk management outcome for your organization. Low-touch claims processing and historical institutional knowledge enable businesses to generate efficiencies for their employees. By driving efficiency with high-quality data reporting and easy-accessed visualizations, using integrated risk and claims management tools, or even setting up smarter access to your data, connecting data from internal and external sources will streamline risk mitigation activities.
Every organization needs to operate with a data-driven and risk-mitigation mindset to create growth and protect itself in the future. To do this successfully in the modern era, organizations need to combine process, people, technology, and data into an accessible, holistic understanding of insurance risk management. But combining and assessing complex data for actionable insights can be easy with the right technology.
Ventiv Technology is the global leader in data analytics trends in risk management and their solutions are used across multiple industries, from tech to higher education to financial services and more. By offering several different modules that can be customized to your organization’s needs, Ventiv enables clients to understand risks, predict outcomes, and take action to prevent interruptions to business performance.
To discuss your needs with an expert and learn more about how Ventiv can transform the way your business manages its risk, schedule a demo here.
