Giovanni Romeo, Group Risk Manager at Parmalat, one of the world's leading dairy companies, has worked intensively to develop and embed an approach to risk management that has generated significant efficiencies and savings.
When Romeo joined the firm seven years ago, there was no information exchange, no central office, and each company ran its a own fleet. Everything was reported not to the corporate office within Parmalat, Italy, but to the broker and then translated onto the insurance market.
Taking A Fluid Approach To Risk Management
"We had pretty sizeable costs and inefficiencies in our motor risks, so RiskConsole was an obvious starting point," Romeo said. "We could easily feed our existing data into this more solid, more shareable, easily scalable application."
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% to 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."
Managing the claims process with RiskConsole means that Parmalat can run reports to monitor turnaround in terms of days from loss occurrence to the response to the insurer They can then look at specific claim types or regions to identify trends or areas for improvement.
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