Ventiv Technology

1 2 | 360º Aon eSolutions » starwood hotels & resorts case study As one of the world's largest hotel and leisure companies, Starwood Hotels & Resorts Worldwide, Inc. has approximately 900 owned, managed and franchised properties in more than 95 countries. Its venues enable the most discerning traveler to collect a world of unique, authentic and enriching experiences that capture a sense of luxury. In the lodging industry, Starwood typifies upscale brands, magnificent décor and impeccable service, which has resulted in superior ratings from guests and industry publications. With experience in world-class hospitality and accommodations, Starwood would not settle for less with regards to a risk management information system. e company needed a flexible browser- based solution to accommodate its specific business requirements. We spoke with Patricia Dillon Villarreal, director of risk management, about the company's process in implementing and configuring RiskConsole to meet its unique needs, in order to facilitate adaptation to the dynamic requirements of the insurance market. a clear picture of global risks and exposures "In our industry, one of the key challenges is the diverse risks and exposures that are represented on a global scale," said Villarreal. "Previously, we used spreadsheets and manual processes to collect risk-related information, but there was really no effective way to compile, manage, or analyze this data." To add to Starwood's challenge, underwriters are demanding more information than ever before. Each year, requests for data expand as new risk characteristics emerge and are taken into account. is underwriting data includes extensive information from Starwood's portfolio of hotels – including statistics such as gross operating revenue and payroll and tracking the number of swimming pools and restaurants, as well as the existence of babysitting services, security services and scuba diving activities. "With RiskConsole, we can provide underwriters with a clearer picture of our exposures," added Villarreal. "For example, RiskConsole's property module compiles comprehensive COPE information. With a complete picture of structural risks, underwriters feel more comfortable in underwriting our various sites. By providing a detailed submission, we've been able to negotiate improved premiums and broadened terms and conditions, and if we wanted to modify coverage, we have had the data at our fingertips to support these requests." Custom modules to accommodate Starwood's unique needs "Some underwriting data points were not required in the past, but with the flexibility of RiskConsole, we simply added data fields in order to meet underwriter requests. Where necessary, Aon extended RiskConsole with custom modules to collect additional information," said Villarreal. During implementation, Aon eSolutions and Starwood's risk management team worked together to align RiskConsole to meet the client's specific business needs. Together, they developed specifications for several custom modules in RiskConsole, including an aviation module, a watercraft module and a fuel storage tank module to track specific risks. "Our lead umbrella insurer required additional information about Starwood's exposures," said Villarreal. "e carrier needed to know what types of helipads our hotels had, where the helipads were located, and how many take offs and landings occurred at each site. With RiskConsole, we now have a unique aviation module to efficiently collect and track this information. "In addition, many of our hotels and resorts are located near marinas, which are usually managed and operated by a third-party. However, being in such close vicinity, we needed to be aware of our risks," said Villarreal. "Within RiskConsole, we developed a watercraft module to track hotels located near marinas and the marinas that had fueling activities, as well as the average size of watercraft berthed in those marinas." "Similar configuration occurred in order to track risks related to our fuel storage tanks," said Villarreal. "RiskConsole now collects physical storage characteristics, such as tank capacity, contents and type of construction, which enables us to assess the risks that exist." Consolidating additional information RiskConsole electronically exchanges data with Starwood's business partners, including its third-party administrator and insurance carriers, as well as with their core systems such as the risk management intranet and accounting software. "With information now compiled and housed in one central location, we can run a broad array of risk management reports," said Villarreal. "We can essentially 'slice and dice' data any way we need to and send summary reports to our senior management. With this sharing of information, our team is empowered to make faster, more accurate decisions to control losses and manage risks." For example, Starwood has used incident reports to identify operational departments with a high rate of work-related injuries. ese departments work to reduce the frequency of claims through

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