Harnessing The Power of Risk in The Insurance Industry

In this article, Gary Lynam, Director of ERM Advisory at Protecht takes a look at how Freeway used digital tools to undertsand risk, manage tasks and transform the business in a holistic way.

As a leading provider of taxi insurance across the UK market, Freeway UK Insurance Services required a holistic risk management system that could seamlessly share information and culturally embed a proactive approach to risk within its business.

As a result, there were two key objectives to deliver improvement: holistic and effective risk management, and a change in approach, where risk was not only managed and mitigated, but also treated as a valuable resource that could be harnessed to fuel growth. This would enable them to update legacy processes and address the challenges posed by fragmented risk management systems.

Holistic risk management

Freeway engaged with Protecht, an Enterprise Risk Management (ERM) software and services specialist, to deliver a holistic risk management system and migrated Freeway from static, reactive tools and processes to a dynamic, proactive and interconnected risk management system.

Freeway now benefits from significantly improved risk controls – an important development, since having robust controls in place is the first step to effectively managing and mitigating risk. The ERM solution identified linkages between risk appetite, identified risk, the potential impact of different risks and the resulting controls. This means that when things do go wrong, it is far easier to investigate an incident, identify additional controls that may be needed, and reduce recurrence risk.

The seamless, interlinked ERM system has also improved risk visibility across the organisation. For instance, an innovative “My Tasks” function delivers an overall view of risk across the business, making it easier for users to understand all incidents and assign responsibility. Risks are now increasingly being noticed by the people who encounter them, rather than having to be noted or recorded by the GRC team.

These innovations have, in turn, boosted individual accountability and enhanced board oversight: the C suite can see exactly who is taking responsibility and completing the actions assigned to them.

Improved productivity has also been a key area of focus, with the introduction of workflow tools easing the administrative burden on staff. For example, the newly automated flow of emails means that individuals no longer need to chase others for information or updates, since the system completes these processes.

In addition, ongoing advisory support on a regular and routine basis, allows Freeway to discuss and identify opportunities to increase the scope of the system beyond pure risk management. This consultative approach has particularly benefited Freeway by offering the board support at every opportunity throughout the journey. All of these changes have led to better relationships between members of staff, and these have steadily filtered into a wider culture change.

Added value across key functions

The risk management strategy has been able to add value to Freeway in a number of tangible ways, including:

Better risk controls – Freeway now benefits from better risk management and has more risk tools to leverage, including defensive controls and investigative tools. This equips staff to better address risks, prepare for risks and anticipate risks.

Digital enablement – The changes introduced have enhanced and supported Freeway’s existing digitisation roadmap. The ERM system has now become a key component of Freeway’s digital transformation strategy.

Enhanced accountability – User accountability has increased dramatically as a result of actions being linked to the incident register.

Efficiency, security and time benefits – The workflow efficiencies and automated reporting functions introduced by the ERM system have boosted security, streamlined a range of previously labour-intensive actions, and allowed staff to save time that can now be redirected towards dealing with actual risk, including focussing on preventative measures.

Ease of use – Designed to be easy to use and navigate, the ERM system incorporates a range of support tools. Where staff and Heads of Departments may previously not have logged risks because they found the old system complicated, the new ERM system has delivered a bespoke form that details the exact information that is needed.

Culture – Perhaps the most significant change, however, has been to Freeway’s risk culture. Executives report that risk conversations throughout the business are now on a much deeper level and that overall awareness of risk has changed dramatically. Moreover, levels of engagement throughout any given risk incident have improved substantially.

About alastair walker 11399 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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