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RMIS Vendors upgrading software for ease of use

Risk Management Systems & Strategies
Spotlight Report December 2, 1996

New risk management information system products feature two major advantages over current offerings: They are easier to use and offer risk managers a greater variety of information, RMIS vendors say.

One common way RMIS vendors are trying to make their systems easier to use is by offering software using Microsoft Corp.'s Windows 95 and Windows NT technology. These programs use 32-bit technology, which allows users to perform more functions simultaneously with their computers than 16-bit technology used by earlier versions of the Windows operating system. The 32-bit technology also gives computer users more flexibility and speedier access to information.

Ease of use is important for RMIS systems because risk managers increasingly are ``relying more on an information system than in the past,'' commented Dave Tweedy, president of Tweedy Risk Consulting in Kingston, R.I.

As risk management departments have downsized, risk managers have picked up more responsibilities, he noted.

Vendors also are offering new RMIS products that allow users to manipulate different kinds of information and analyze information on a higher level.

"There finally seems to be a greater emphasis on the actual analysis of the data'' instead of just claims processing, said David Duden, national RMIS practice leader at Deloitte & Touche L.L.P. in Hartford, Conn. Some of the new programs even offer suggestions and guidance based on the analysis, he added.

Several of the major RMIS vendors plan to introduce 32-bit versions of their systems early next year.

For example, Atlanta-based Crawford RSG, a division of Crawford & Co., plans to release Windows 95 and Windows NT versions of its SIGMA system early next year, according to Jeff Weiss, national business development director in the company's Schaumburg, Ill., office.

The new 32-bit software "will make the data accessible in the familiar Windows environment,'' he said. The new technology also will "reduce the amount of training and expertise'' necessary to use the system, he added.

Corporate Systems Ltd. of Amarillo, Texas, will introduce a 32-bit version of its CS Knowledge on Jan. 1, according to Jeff Hand, director of marketing.

Travelers Corp. also plans to introduce a 32-bit Windows NT version of its CARMA system early next year, said Mike Strietelmeier, director of risk management services for the Hartford-based insurer.

"The marketplace is pushing for systems that are easier to use, that are point-and-click,'' he commented.

ESIS Inc., the insurance services subsidiary of CIGNA Corp., plans to introduce a 32-bit version of its CRIS system next spring.

CRIS 32 will incorporate the capabilities of three ESIS systems: CRIS, CRIS Advanced Functions and OMNICLAIMS, according to Larry Keough, vp-ESIS information products and services in Philadelphia. CRIS 32 also will enable users to perform cost-of-risk modeling, aggregate monitoring and other analysis, he said.

ESIS' "intent is to roll over all mainframe customers to either this new system or another PC-based system,'' Mr. Keough said. The company also plans to market CRIS 32 "aggressively'' to customers not already using other CIGNA programs, he added.

Many of the new RMIS products give risk managers new information or enable them to use information in different ways.

For example, DORN Technology Group Inc. of Livonia, Mich., in October introduced a data validation system that allows risk managers to apply custom business parameters-such as vetoing claims payments greater than a certain dollar amount-to claims data, according to Mark Dorn, president.

DORN also recently introduced a new executive information system that allows users to analyze financial and statistical claims information.

Products that provide executive analysis and reports are becoming more prevalent because of an "increase in the communication of risk management issues to more people within the company,'' said Mr. Duden of Deloitte & Touche.

DORN also has introduced an online claims standard that the company hopes other RMIS vendors will adopt. The claims standard outlines what information should be in an electronic claim and how that information should be presented.

A sample of the proposed claims standard is available on a floppy disk for a one-time fee of $19.95; users also will receive further information and periodic updates, according to Mr. Dorn. The company has distributed about 1,000 disks since September, he said.

Near North Risk Technologies in Chicago has two new products that give risk managers different kinds of information.

Easy Actuary is a Windows-based financial analysis system that "demystifies the actuarial process,'' according to Evan Busman, vp/financial risk management for the vendor.

The program, which will be available early next year, will enable risk managers to perform many analyses they now outsource, Mr. Busman said. "It's not that complex,'' he said. "What we tried to create is a program that can walk (risk managers) through this process.''

For example, Easy Actuary allows risk managers to forecast casualty losses instead of relying on brokers or actuaries, he explained. The program also helps risk managers analyze the cost differences between different retention levels, calculate accruals for loss reserves and derive historical loss development trends, Mr. Busman said.

Easy Actuary also allows companies to calculate their own loss development factors if they have the appropriate historical data or use a loss development factor built into the program that corresponds to the company's risks, he added.

Near North also has developed an online guide to insurance laws, regulations and guidelines in 185 countries around the world. World Link does not cover U.S. insurance laws and regulations.

World Link provides information on property insurance, casualty insurance, bonds, social security, captive domiciles, marine insurance and recent changes in insurance laws and regulations, according to Elizabeth Demaret, vp- international accounts division manager.

Near North customers can access World Link through Lotus Notes. Other customers can hook up via the Internet at http://www.nnworldlink.com . An annual subscription to World Link costs $495; however, users visiting the web site can receive a free 10-day trial providing information on France, Argentina and Japan, Ms. Demaret said.

Pyramid Services Inc., of Ridgefield, Conn., plans to introduce a new non- occupational disability module early next year, according to Vp Gary Michaels. The new module will enable Pyramid system users to determine short- and long- term disability benefit eligibility and calculates benefits.

Several new companies are trying to break into the RMIS field with their own unique products.

For example, Risk Laboratories Inc. of Roswell, Ga., offers Risk Folio, a claims management and analysis system. In addition to fulfilling a risk manager's claims management needs, Risk Folio allows users to perform analyses such as comparing aggregate limits to aggregate losses and calculating a company's cost of risk as a percentage of sales or revenue, explained President George Netherton. Mr. Netherton started the company nearly three years ago after working in corporate risk management, including serving as risk manager for The Coca Cola Co.

Risk Folio is available in 16-bit and 32-bit versions.

Boston-based Inforisk, a new company, is a joint venture of Effisoft, a European company with offices in London and Paris, and Arkwright Insurance Co.

The 1-year-old company's RMIS product, called Arkrisk for Arkwright customers and Gestrisk for other clients, incorporates claims data for workers compensation, property, casualty and crime claims into a single, integrated package, according to CEO Olivier Adler. Inforisk coordinates with insurers, brokers and third-party administrators to download all the data into the program.

In addition to performing common claims management functions, the software can generate reports on premiums, loss control recommendations and retained losses, Mr. Adler said. The program also tracks different property perils and maximum foreseeable losses in property damage and bodily injury, he added. The program also can adapt to multiple currencies and languages, including English, French, German, Dutch and Spanish.