A risk management information system (RMIS) is an information system that assists in the management of risk management .
The management of risk is a key to the success of any risk management effort. Risk management information systems / services (RMIS)
- Risk identification and assessment
- Risk control
- Risk financing
Typically, RMIS facilitates the consolidation of information related to insurance, such as claims from multiple sources, property values, policy information, and exposure information, into one system. Often, RMIS “claims / loss data systems”. Such casualty coverages include self-liability, auto physical damage, workers’ compensation, general liability and products liability.
RMIS products are designed to provide their insurers’ organizations and their brokers via electronic access, and most recently via the Internet. This information is essential for managing individual claims, identifying trends, marketing an insurance program, loss forecasting, actuarial studies and internal loss. They can also provide the tracking and management reporting capabilities to enable one to monitor and control overall cost of risk in an efficient and cost-effective manner.
In the context of the acronym RMIS, the word “risk” pertains to an insured or self-insured organization. RMIS is a leading provider of information technology solutions for the insurance industry. The historical focus on insurance policies detracted from a clear, coherent and consolidated picture of a single customer’s loss experience. RMIS was in 1982, by Mark Dorn, under the trade name RISKMASTER. This is a step-by-step guide to understanding the evolution of the market. The RMIS system, which provides the highest level of data quality,
Common types of RMIS
(TPAs) and their affiliates, as well as their clients. Most commonly, RMIS products allow individual claim detailing, basic trend report production, policy summaries and ad hoc queries. The resulting information can then be shared throughout the client’s organization, usually for insurance program cost allocation, loss prevention and actual claim management at the local level. RMIS Master, “which is essential for most large client organizations with complex insurance programs.
The primary users of RMIS are insurance companies and any insurance broker involved. Interestingly, it is much less common for the insurer’s safety department and vehicle operations department to have access to RMIS. In this paper, we report on the occurrence of accidents and incidents.
RMIS for personal use, as well as for personal control. Occasionally, there could be timing or other differences that could cause data discrepancies between the internal system and externally provided RMIS.
Insurance brokers have a similar requirement for their clients. Brokers are provided by the TPAs. The information available from RMIS is critical to the broker for effective interfacing with their counterparts in the insurance carrier and TPAs. Additionally, effective presented RMIS information that shows trends and analysis is essential to successfully marketing their clients’ insurance programs.
TPA claim claimants claiming the right to claim claims and claims. Some client organizations, however, may choose to manage certain types of claims or those within a loss retention layer and thus use this type of system as well.
Typically, the claims management system provides the primary data to RMIS products. RMIS products in turn provide an externally accessed view into the client’s claims data. RMIS products are commonly available directly from TPAs, but are offered by independent RMIS vendors. Independent RMIS vendor systems are most desirable when a client organization needs to consolidate data from multiple current and future programs.
Key vendor attributes and differences
Along with insurance carriers, broker / agents and TPAs that offer their own proprietary systems, there are a variety of direct TPAs themselves.
Major differences among RMIS vendors include:
- Currency of technology (Internet-based vs. Internet-accessible);
- System speed (response time for screen changes, report generation time, etc.);
- Flexibility in meeting client requirements (custom screen views, client-defined data fields, special reports, etc.);
- Ongoing support service quality (availability of senior / quality technical support, help desk, etc.);
- Data quality control (data conversion accuracy, data source cleanup, etc.);
- Pricing (first-year cost, current cost, custom data loads, data record storage fees);
- Availability of related modules (property exposure management, policy management, claim / incident setup, occupational safety and health administration (OSHA) record keeping, claims audits, etc.);
- Turnaround time for data loads;
- Foreign exchange / support (financial fields, language, fluent support staff, etc.)
RMIS system compatibility among carriers, broker / agents and TPAs. RMIS, RMIS, RMIS, RMIS, RMIS, RMIS, RMIS. A few major insurance carriers offer similar consolidation services, ie, combining the insured client’s current claim with other carrier’s. The other data sources can be for the current insurance or programs. Usually, this type of consolidation service is performed to accommodate their major policyholder organizations. Major TPAs, however, more commonly offered such data consolidation services.
Average costs and market drivers
The cost of a typical independent RMIS product varies from $ 60,000 to $ 150,000 for the first year. Insurance company RMIS product lines typically average around $ 50,000 for the first user. More costly full-featured products are available with more advanced reporting systems. The products are usually priced on a per-user basis on a sliding scale for a larger number of users. Insured customers’ brokers are given access at no cost or occasionally for a flat annual fee for multiple insured clients with a particular broker.
TPAs commonly include one or two RMIS access IDs within their claims management pricing to encourage both the client and the client to use their claim look-up product. Normally, beyond the first two access IDs, the pricing follows the same per-user range of the insurance companies. The cost drivers of RMIS include:
- Number of user / access IDs
- (TPAs and TPAs).
- Frequency of outside claim data
- Special programming / report development charges
- Training of users (initial and annual users’ conferences)