In this series, we are focusing on ways in which a Risk Manager can add value to the bottom line of his or her organization using RMAP technology.  These avenues of added value include: lower cost, asset protection, revenue enhancement and competitive advantage through better management of tactical and strategic Risk.

Lower Cost:   Today’s BLOG will focus on efficiency achieved through the use of RMAP technology.

Case in Point:  State Government Department of Risk Management
A western state implemented their RMAP⁽¹⁾ in November 2010. The implementation consisted of four phases. The following general capabilities were included in the four phases:

Policy Renewal Process Automation Enhancements

• Outgoing Certificates Automation
• Division of Facilities and Construction Integration
• Claim Administration Enhancements
• Loss Control Enhancements
• Fleet Incident Integration
• Excess Carrier Reimbursement Management
• Custom Business Intelligence Analytical Report

Phases 1-3 completed projects:

• RMIS (risk management information system) Implementation –  June 2011
• Attorney General Billing Integration –  September 2011
• Financial System Integration – September 2011
• Data Warehouse Reconciliation- September 2011
• Fleet Integration – September 2011
• State and School Contacts / Property / Vehicles / Premium Renewal Database Conversion – July 2012
• Claim Administration Enhancements – July 2012
• Workers Comp Integration- January 2013

Results in current annual savings:

• Premium Billing Process: $1 million through the discovery of cumulative premium under billing, due to incorrect calculations in previous database
• Financial system integration: $22,100 and 82% increased efficiency in processing high dollar payments (from 17.1 days to 1 day).
• Attorney General (AG) integration: $7,200 and 93% increased efficiency in processing payment of bills (from 29.3 days to 2 days).
• Data Warehouse Reconciliation: $4,420 from 5 hours a week to no time because of complete automation.
• Contact Database: Significant man-hour savings due to elimination of double data entry.
• Web access to RMIS from field saves trips to office and speeds up time to generate reports (too early for exact metrics).

The state Risk Fund managed by the Division of Risk Management insures State government agencies, school districts, institutions of higher education and charter schools.  The Fund insures:

• Over $28 billion worth of property
• Over 7,000 buildings
• Over 13,000 vehicles
• Liability coverage for over 120,000 employees

And, the Division offers claims adjusting, loss control services, insurance procurement and policy management.

The State Division of Risk Management recognized that several work processes were siloed.  It was in need of a better reporting, communication, and workflow tools; and improved integration of all business processes, databases and systems in one place.  Additionally, regarding the insurance renewal process, the DRM also struggled with paper/manual data updates, a manual billing process, cumbersome and manual reporting processes and the fact that history was not retained in one database, but rather, in a series of four separate Access databases.  The DRM was forced to manually piece reports together every year for reporting.

The RMAP solution implemented offered a reliable platform to handle all insurance and claim related responsibilities, data accuracy and reporting – in a way that was not previously available before for the State.

In addition, the RMAP features of the system automated further processes to connect and interface with even more groups within the organization:

• Division of Finance for payments to claimants
• Attorney General for legal expenses
• Division of Facilities and Construction for better property information management

All of these new interfaces eliminated formerly disjointed data from disparate sources. The result:

• Significant cost savings
• Improved sharing of data
• Consistency in data
• More accurate reporting
• Better analysis for improving operations
• Better understanding of exposures

“It was truly remarkable to achieve so much ROI in such a short period of time!”