Naturally, it would be remiss to say that by using a risk management
information system all companies will achieve a reduction in
premium. In fact, by providing more information, companies may see
the opposite, and an increase in premiums.
However, by providing high-quality data, risk/insurance managers are
able to meet their duty of disclosure, which in turn means that when a
claim happens, policies won't run the risk of being voided and claims only
being partially paid.
The knock on effect would be that claims would then need to be paid by
the company, rather than the insurer, and so impact the company's P&L.
Another vital component of the insurance renewal is the conditions of
the policies. By providing a comprehensive picture of all your risk and
exposures, many insurers will provide more favorable conditions. For
example, better deals on retrospective dates, increases in limits,
wider terms on the way claims are reported and less stringency on
timescales.
The result is that it is easier for the risk/insurance manager to meet the
conditions of the policy, and so avoid insurers denying the claims on
grounds that the conditions weren't met. Again, any denied claims would
have an impact on the company's P&L
THE ULTIMATE GUIDE TO RENEWALS: Leave Your Spreadsheets Behind 15
HELPS AVOID POLICIES BEING VOIDED & CLAIMS BEING UNDER-INSURED IMPROVED CONDITIONS OF INSURANCE POLICIES
