Let us do the maths: calculate your ROI from a RMIS
In recent weeks, I’ve directed numerous risk and insurance managers in the market for a new RMIS to our online Return on Investment (ROI) calculator. When they enter their organization’s details, the common response is, “We can really get this kind of return on our investment in a RMIS?!?!?”
Now, you might be thinking, “They’ve probably based the calculator on inflated percentages and numbers.” You may be surprised to learn, however, that quite the opposite is true. In fact, we’ve based the calculator on industry standards and quantitative results from our own clients. And, to be sure we’re painting an accurate picture, we made it a point to be conservative in the calculations behind the calculator.
Here are a few highlights from the client experiences:
Sony Europe, highlighted in a recent Commercial Risk Europe report, reported that a RMIS helped it take corrective actions that reduced loss ratios and lowered premiums across its European operations by more than 60% since 2006.
The Mosaic Company cut the time it takes to gather data from eight to two weeks and reduced its excess liability premium by 10.7%.
And, rather than an expected fee hike of 5-15%, as a result of several large claims, Parmalat was surprised to receive no increase thanks to being in control of their risk and exposure data. Also, Parmalat’s RMIS has facilitated a much faster claim process, providing a potential saving of 50% per claim.
The payoff on your investment in a RMIS could be equally significant. Furthermore, it isn’t just savings on risk transfer costs that could benefit your organization; other advantages include:
Eliminating manual processes, such as consolidating data and producing interactive and workable management reports.
Improving data accuracy, so informed decisions can be made in a timely fashion, about how to manage and mitigate risks.
We hope that the ROI calculator proves useful, and we welcome your comments and an opportunity to discuss your findings.
The calculator also provides email and print options so you can share your calculations with colleagues and formulate your own risk management information strategy.