How a Risk Management Information System (RMIS) Adds Efficiency, Security, and Savings to Claims and Risk Management
Technology’s pervasive influence has led to the expectations of real-time results, and this is as true for the insurance industry as any other industry. Technology has not only created greater efficiencies, but has led to cutting edge resources and faster services to the client. Overall, technological innovation has become a critical differentiator.
Now we enter the arena of a Risk Management Information System (RMIS). A major challenge for many organizations is aggregating and analyzing claims and exposure data. A RMIS is one of the most efficient and effective ways to overcome this challenge. A RMIS helps to better manage risk profiles, assist with asset allocation, and in the process, reduce the total cost of risk for a company.
The RMIS facilitates the transition from paper to electronic monitoring and intake with loss data, OSHA requirements and exposure data, which is imported automatically and on a predetermined schedule. It also enables notifications and alerts to keep the company’s team on track, and ensures data consistency and integrity across an organization.
Transitioning from paper to electronic intake through RMIS streamlines the collection of data and accident information. There’s immediate access to loss data, even as workflow and data integrity are improved. This allows for real-time decision-making: Carriers, TPAs and other third parties can immediately be notified of an event, as information can be logged and assigned within seconds, along with supporting data. Risk control consultants can survey a property or conduct a safety audit all in real-time. The savings results from the reduced time it takes to review a potential claim or location, which can be thousands of dollars each year.
Add in the assistance of risk control and claims consultants, and we are all in a better position to reduce our total cost of risk
Moreover, cloud-based (SaaS) RMIS also allows organizations easy access to vital data through a secured web browser or mobile device. It gives them the latest technology year-round, without scheduled downtimes or the risk of service disruptions. Not only are hosting costs reduced, but costs and risk are transferred to the hosting provider.
The system also has implications for data security, starting with the benefits of centralizing data in a secure, cloud-based environment. Moreover, using a RMIS on a web-based platform boasting the latest security certifications and data encryption in transit and at rest can further reduce the risk of data breaches.
The RMIS also helps organizations manage key regulatory compliance requirements, such as OSHA and Medicare/Medicaid Services mandatory CMS-111 reporting requirements, much more easily. For example, a new electronic filing rule this year requires employers to electronically submit injury and illness data to OSHA. Three submission options through a secure website are expected, including manual input, a CSV file upload, or a direct transmission to OSHA via an Application Programming Interface (API). It is anticipated that OSHA will soon accept electronic submissions; the RMIS’ capabilities will ensure employers are OSHA-compliant in reporting workplace injury or illness.
It is vital for organizations to monitor and identify risk factors that have the potential to cause financial loss or harm to an organization, and a RMIS is an important tool helping them identify risks before they happen. It is especially important as it opens the door to improved best practices in risk management, especially amongst smaller organizations with fewer internal resources to do the job. Cutting edge technology has given us a much better mousetrap for managing risk. Add in the assistance of risk control and claims consultants, and we are all in a better position to reduce our total cost of risk.