With RiskConsole, Andritz has gained the data aggregation, consolidation, and reporting capabilities that have led to a 22% reduction in total cost of risk between 2008 and 2009.
Containment Strategy: Keeping a lid on Premiums
With expansion and acquisitions, annual sales for Austrian-based Andritz Group, a multinational manufacturing, technology, and services company, more than doubled between 2004 and 2008. Along with this growth came the usual challenge of efficiently aggregating and analyzing loss and exposure data.
According to Monica Rifenburg, the Andritz Group's co-director of insurance, a small risk and insurance team had previously relied on Excel- and Word-based manual processes to collect local data, prepare statements of value, and determine the fast-growing company's global cost of risk. "Identifying and correcting the errors that inevitably arose from copying, pasting, and inputting data was also time-consuming" Monica recalls. "We decided we needed a risk management information system (RMIS) that would streamline our processes and put us in a position to be confident in our figures and data."
Monica and her team had a clear vision not only of what they needed a RMIS to do on a functional level, but also what it had to help them achieve on a strategic level. "We needed a RMIS to track all of our claims and loss runs in a single place, which would eliminate manual processes and enable us to identify trends sooner, such as a division with rising property losses or a company with excessive liability exposures. We wanted to ensure the accuracy, timeliness, and comprehensiveness of the global risk management and insurance data that we present to our board of directors and to our underwriters. We felt certain we could optimize our total cost of risk by basing our risk and insurance decisions on the soundest possible data."
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