Ventiv Technology

1 8 | 360º Aon eSolutions Parmalat rolled out the new system in 2010 to manage their motor risk in Italy and today, seven employees across the country use RiskConsole on a daily basis. Romeo commented, "We are now in control of the information and the trends deriving from low-intensity but high-frequency risk, as motor risk is. Parmalat has 1,300 vehicles and 500- 550 claims every year. It is not even a risk; it is a certainty." ClArity At renewAl "From the very get-go, RiskConsole allows you to have a positive impact in negotiating premiums," Romeo asserted. "If you have reliable, accurate data, you are able to interact with the insurance companies in a better and more candid way." During December 2010 renewals, Parmalat had expected to see a fee increase due to some large claims towards the end of the year. Romeo said, "We were forecasting a spike of 5-15% in our premium. That did not occur, mostly because we had control of the numbers. There is a positive effect on savings and consequently on our total cost of risk, deriving from a better knowledge from using a powerful tool like RiskConsole." suppOrting wOrkflOws tO reduCe ClAim COsts While having data in a consolidated, consistent format was important, critically it enabled Parmalat to move quickly after a claim, which is required by law. Romeo said, "RiskConsole has helped to formalize the process, to substantiate the fact that a thorough process Prior to the restructuring and re-listing in 2005, the firm consisted of several companies, which had their own approach to risk management, with no central coordination. Giovanni Romeo, Group Risk Manager at Parmalat, has worked intensively ever since to develop and embed a new approach; one that has now generated significant efficiencies and savings. the steps tO suCCess When Romeo joined the firm seven years ago, there was no information exchange, no central office, and each company ran its own fleet. Everything was reported, not to the corporate office in Parma, Italy, but to the broker and then translated onto the insurance market. Romeo commented, "When it came time for renewals, nobody in Parmalat knew exactly the size of the risk, the size of the claims, the number of claims, if we were getting paid correctly or if we had legal expenses that were out of control." Consequently, they created a simple database to contain claims and by 2009, it was fairly robust. Romeo said, "However, it was not fully reliable, nor shareable with the risk owners in the business to whom we wanted to return the information so that they could understand and better manage the process. So when Aon introduced RiskConsole as an alternative solution, Romeo was interested. He reflected, "We had pretty sizeable costs and inefficiencies in our motor risks, so it was an obvious starting point. Plus, we could easily feed our existing data into this more solid, more shareable, easily scalable application." Giovanni Romeo, GRoup Risk manaGeR at paRmalat (RiGht) With one of his WaRehouse ColleaGues ItalianfirmParmalatisoneoftheworld'sleadingdairycompaniesandis listedontheMilanStockExchange.Withadirectpresencein16countries and license agreements to distribute their brands in an additional nine, their 14,000employeesmanufactureanddistributemilk-derivedproductsand fruit-baseddrinkstogenerateaturnoverofapproximately€4.3bn.

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