Survey: Pandemic accelerated RMIS utilization and investment

A study shows risk management information systems are evolving to address a range of insurance and safety-related needs.

“As they look for the fastest route to meet the evolving needs of their clients, many RIMS vendors are expanding capabilities by integrating third-party solutions. For instance, these solutions currently include cybersecurity, catastrophic risk, artificial intelligence, and analytics, all of which are being integrated into various RMIS platforms,” said David Tweedy, senior  advisor at  Redhand  Advisors, in a press release. (Photo: Elnur/Adobe Stock)

The pandemic has redefined what it means for a business to be “resilient.” It follows that organizations and public entities throughout the U.S. increased their reliance on risk management systems to manage evolving exposures this past year.

At the same time, risk management information systems (RMIS) vendors stepped up their game to provide innovative tools to help businesses manage and respond to COVID-19.

Now, a new survey shows just how much risk professionals adapted their operations to withstand the crisis.

Redhand Advisors surveyed 1,100 risk professionals and found that 38% of respondents increased their use of risk technology during the pandemic, with only 6% noting they decreased their use.

“One of the recurring themes we heard in speaking with clients, which was reinforced by the results of the user survey, was that the COVID-19 pandemic was a wake-up call that many organizations were not prepared for,” writes Patrick O’Neill and David Tweedy, co-authors of Redhand Advisors’ 2021 RMIS Report, which reveals the survey’s findings. “Risk professionals were front and center, but many felt like they didn’t have the tools to effectively manage the response. Organizations were faced with operating in unprecedented ways, and they dealt with significant challenges while becoming more technology-dependent than ever.”

Evolving risk technology

In a press release, O’Neill, who serves as president of Redhand Advisors, noted that RMIS vendors have expanded functionality to address a spectrum of sophisticated risk management, insurance and safety-related needs beyond their initial focus on claims management and administration.

The survey revealed that 76% of risk professionals rely on their RMIS for claims management, 55% for claims administration, 37% for incident intake and management, and 31% for managing insurance renewals.

Risk professionals also are broadening their RMIS utilization to span policy and program management (28%), environmental health and safety (20%), benchmarking (20%), exposure and asset management (19%), enterprise risk management or governance, risk and compliance (18%), and captive and pool management (12%).

Additionally, the risk management technology consulting firm found four operational areas of the claims process that are benefiting from RMIS innovation:

“Traditionally, RMIS solutions focused on insurable risks and offered capabilities to support that effort. In the past few years, we have seen RMIS vendors expand their capabilities in GRC, EH&S, audit and compliance, and third-party risk to complement their core capabilities. By offering more comprehensive solutions, they can support the entire enterprise and meet the challenges of organizations that are adopting an IRM strategy,” writes O’Neill and Tweedy. “We expect this trend to continue to grow and anticipate that RMIS vendors will continue to develop their capabilities, as well.”

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