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2. Application Program Interfaces (APIs)
increase access to risk data.
An API allows systems to communicate
with each other without complex software
development and customization. APIs are
the key to systems integration, connecting
your key systems such as a RMIS with other
applications. These interfaces are growing
and changing how the insurance industry
shares data.
APIs also open a direct connection to real-
time data, which has been a significant
challenge for the insurance industry.
Historically, risk data such as claims has been
updated on a batch basis, anywhere from
nightly to once a month, but it's nowhere
near real time.
Carriers and other industry partners are
starting to offer APIs, which will revolutionize
how you can access risk information. You
can link to your internal systems via APIs as
well to get a view into key business metrics
to make better decisions. APIs offer your
organization faster, more seamless access to
information and can become a game-changer
for your process.
3. Analytics, artificial intelligence (AI) and
machine learning grow.
Today, most organizations have basic data
analytics in play, but the vast amounts of data
available in insurance makes the industry a
highly worthy opportunity for AI, machine
learning and advanced analytics. Powerful
new analytics tools are available and more
realistic for industry today, given the amount
of data generated. Knowing how to leverage
data using these tools within or adjacent to
the RMIS can help businesses stay ahead of
the game and control costs. Expect to see
greater emphasis on risk data to predict and
find insights to drive business in 2023.
Organizations can take advantage of this
trend through tools in your RMIS or third-
party analytics tools. Advanced tools layered
on top of your RMIS use APIs to pull data for
the analysis, then push insights back to the
user or the RMIS. The result: less time spent
looking at data and more time addressing
opportunities based on what the analytics
tells you.
4. Digital transformation takes hold.
Insurance has come later to the digital
transformation party, but we will likely see a
surge in demand for it in 2023. The industry
wants to move away from paper and manual
processes as much as possible, and some
organizations have already begun the total
transformation of all business processes.
Digital transformation leads to improved
efficiencies and quicker decisions, but it also
gives you better, faster access to the data
you need to run your business. Real-time
information is used to ensure efficiency of the
team. Data-driven decision-making optimizes
processes and can even allow organizations
to predict and anticipate some trends.
Essentially, it puts organizations in a proactive
— versus reactive — business mode.
5. Technology enables integrated risk
management (IRM).
IRM is a strategic and collaborative way
to manage risk across the organization.
Technology is helping make IRM a more
attainable reality since businesses are
much more connected than ever before,
allowing better decision-making based on
a collaborative approach to managing risk.
Organizations share data, technology and
much more across company lines, and as
a result, they also share risk management.
Technology will continue to have a huge
impact as more organizations take on this
IRM approach to how they manage risks
collaboratively.
It all revolves around the RMIS
Despite all the anticipated growth in
technology and improvements in data
collection and analysis, don't expect anything
to unseat the foundational RMIS platforms
as the center of the RiskTech universe.
Innovation and advancement within RiskTech
integrations, however, will lift the tide for the
industry, helping organizations that use data
best ride the wave ahead of the pack.
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