Forward-thinking risk managers and their teams require the proper mechanisms for bolstering their organization's risk management strategies in the face of increasing complexity and interconnected risks. These measures and tactics include eliminating manual processes and automating their renewal management workflows by adopting an integrated risk management strategy.
In this article, we’ll explore how renewal management software can help automate and streamline workflows, while at the same time mitigating exposures for improved resilience and an optimal enterprise risk posture.
Enterprise Imperatives
Traditionally, enterprise renewal management has relied heavily on periodic assessments, manual data gathering, and retrospective analysis. However, the evolving risk landscape and business ecosystem have undergone a profound transformation, marked by accelerated technological advancements, globalization, and the increasing interdependence of various industries. This evolution necessitates a departure from the conventional reactive risk management approach towards a more proactive and dynamic model for renewals.
To this end, the reduction/elimination of manual processes and prioritization of automation efforts are no longer "nice-to-have" initiatives; they are enterprise imperatives for weathering the current challenging economic conditions.
In a recent interview with CIO Magazine, The Hartford CIO Deepa Soni cites enterprise agility and "extreme automation" as key tenets that power her firm's continued growth. For risk professionals looking to follow suit, adopting similar strategies for increased automation and agility starts with empowering their teams with the proper tools and solutions.
These capabilities are especially crucial for modern renewal risk management by providing their teams with the appropriate tools and platforms for facilitating comprehensive real-time data interchanges/integration. Doing so allows risk managers to increase productivity levels, boost collaborations across teams, and make more informed decision-making with fewer errors.
Replacing Manual Processes
Traditional, time-consuming processes have long powered the bulk of the renewal data collection and input activity, but they’ve also required extensive manual entry and clean-up before effective use. For example, using spreadsheets for the renewal process can require 75 days of collecting data and producing charts or reports. On the flip side, underwriters often only receive about half of the data they need to accurately price an organization's risk and exposure. Records of claim histories may be readily available, but data about loss prevention strategies, accident-reduction programs, or specific risk mitigation initiatives may not be accessible easily.
These processes are inherently limited—not only because they are time-consuming and prone to errors, but also because they stifle competitiveness and innovation. Firms stuck on manual processes lack the agility required to keep pace with the speed at which risks materialize in today's dynamic operating environments.
Relying solely on historical data and intermittent, manual processes can lead to a myopic view of potential exposures, leaving organizations vulnerable to emerging risks that may not have been previously identified or adequately addressed. Or, they may produce higher renewal premiums than are necessary, causing customers to shop elsewhere for better rates.
Furthermore, the lack of complete data integration inhibits the ability of risk teams to respond swiftly to unfolding events. In today's "always on" modalities, delays in accessing and analyzing critical data can result in missed opportunities in renewals management.
Comprehensive, Rich Data
By adopting renewal management software, risk managers and teams can rest assured that they always have access to comprehensive data for a more streamlined and responsive workflow. However, your renewals solution should go beyond just improving workflow. The right renewal management process should enable:
- Easy management of renewal contacts with automatic user provisioning, such as the creation, modification, disabling, and deletion of user accounts across IT infrastructure and business applications
- Task reassignment and section delegation to ensure the right contact completes the questionnaire
- Validation of entry and variance commentary to minimize manual errors and confirmation cycle for change reasons
- Formal approval process with signature to confirm values
- Automatic reminders and comprehensive overview of submission status
Reducing Risk Exposures and Operational Complexity
Renewal management software allows for automation that reduces risk exposures by monitoring for changes in the operating environment or market conditions and triggering the appropriate actions. With artificial intelligence (AI)-based platforms, risk managers can harness advanced systems that can both automate repetitive tasks as well as learn and adapt based on evolving data.
In short, an integrated risk and renewal management solution can help enterprises streamline their operations while creating new opportunities for innovation.
Firms must continuously improve their offerings and service levels while at the same time reducing costs and overhead to remain competitive in today's complex and rugged business environments. Risk managers should look towards reducing operational complexity as a pragmatic way to achieve these ends.
To learn more about what renewal management software can do for your organization, contact Ventiv for a consultation or demo today.
