It’s evident, Insurance companies are in the business of taking risks. Globally these companies write policies that deal with specific risks, and in a lot of cases, even underwrite bizarre risks. As a direct consequence, therefore, insurance companies ought to be good at managing their own risks. However the truth is a minute far from that!
Though most insurance companies are very excellent at assessing insurance risks, they are not very good at setting up structures in their own land to manage and handle their own operating and business risks.
Because an emerging need from the credit crisis, IRDA issued a set of guidelines on corporate governance in 2010, which holds a reference to the setting up of a mandatory risk management committee (RMC).
The RMC will have to lay down a risk management strategy across various outline of business, and the operating head must have direct access to the Board. However, IRDA have left it to the companies itself to work out on the details of how risk management functions were to be suitably organized by them depending upon the size, nature, and complexity of their business.
But that should in no way demoralize or weaken the operative independence of the risk management head. For the reason of this leeway, most of the Indian insurance companies have given risk management responsibilities to one of the actuaries, which is not a very right move toward independence. Today it is well known that sound management of an insurer, is reliant on how well the various risks are managed across the organization as for other financial sector entities.
AdWISE ASSURE helps in improving insurance risk management with advanced data insights and latest technology implementations.
Our potential capabilities:
- Data Analytics – Advanced insurance data and analytics that bestow you the answers you need to help in maximising profits and gaining the competitive edge.
- Claims – Insight-driven insurance claims solutions which can aid in transforming and automating your claims management workflows.
- Fraud – Vigorous insurance fraud solutions that will enable in identifying the possibilities of fraud at the earliest possible moment.
- Underwriting – Data and analytics for improved underwriting performance, permitting you to achieve operational efficiencies and thus delivering a better customer experience.
Risk Management India
Risk Management in insurance in India has gained immense significance in the global economic picture where many companies are now recognizing the need for applying this concept in their organization. This is because unless risk is monitored appropriately the very existence of business can be at stake.
In western countries, Risk Management is an important criterion but however in India even though Risk Management importance has been recognized, still no concrete step has been taken to establish so that risks may be identified in advance and suitable measures be taken to avoid them.
5 Basic but Key Methods for Risk Management
1. Avoidance :
Avoidance means mitigating risk by managing one’s own health and not participating in activities that may cause injury, sickness, or death. Smoking cigarettes is a good example of such acts as avoiding it will reduce both health and financial risks.
Basically Life insurance companies mitigate this risk by raising premiums for smokers versus nonsmokers.
2. Retention :
Retention means acknowledging the predictability of certain risks, and usually, this accepted risk is a cost to help offset larger risks upcoming shortly in health care. It could denote opting for a lower premium health insurance plan that carries a higher deductible rate
3. Sharing :
Sharing risk can be implemented to how employer-based benefits (where the company pay a portion of insurance premiums) are often more affordable than an individual getting his own health insurance.
The perceptive here is that with more the participants sharing the risks, the lesser the costs of premiums proportionately.
4. Transferring :
Transferring risk in healthcare relates to the cost of the care that is transferred from the individual to the insurer, ahead of the cost of premiums and a deductible.
After accepting the terms and conditions and paying the premiums, an individual has possibly transferred most of the risk to the insurer even if not all.
5. Loss Prevention and Reduction :
This method of risk management tries to minimize the loss, instead of completely eliminate it. Preventative care is an example of this in healthcare.
Insurance risk management India
To support the growing complications of the systems, insurers today need to vigorous testing capabilities, new skills and toolsets. Insurance industry leaders are changing their focus from IT investments to legacy applications transformation in order to improve customer closeness and effectively deal with the insurance risk management in India. In todays speedy, 24×7 world, effective risk management is essential to drive user adoption of business applications. But again for insurers, risk management can be hindered by the complexity of the systems and fresher technologies.
To test insurance applications, you need not just certified test professionals—but also specialists who are insurance industry experts and who can understand your business towards risk management effectively. Insurance organizations are highly focused to introduce digital assets, products, and tools to delight today’s digitally savvy customers and agents.
The testing applications and portals need to be high performing, robust and intelligent that support and streamline internal and external applications and tools which is utmost important.
AdWise Assure insurance risk management help you in providing all-inclusive insurance software testing services for all areas of businesses including property & casualty, life, health, reinsurance and many more.
AdWise Assure provides :
- Wide-ranging all inclusive testing services for property & casualty, life, and health insurers across the complete testing lifecycle
- Help to assess, execute, and manage all your insurance risk management efforts.
- Test offerings that are unrivaled in the insurance industry, with proven insurance expertise united with global delivery model.
- Immaculate products, web applications, mobile apps for your customers and employees
Insurance Product Testing’s Offerings & their Benefits
Quality and testing for insurance can be very complex with claims processing, billing, data warehouses, scalability, security, and for sure accuracy.
AdWise Assure offers specialized risk management and software testing services in insurance domain such as Performance, Automation, Security, Integration etc.
Performance Testing :
End-to-end Performance testing specializes in P&C, Life, Health, Pensions & Re-insurance that includes volume testing, capacity testing, load testing, stress testing, endurance testing, scalability testing and reliability testing.
Automation Testing helps improve test effectiveness across multiple environments, multiple devices, and channels when insurance applications grow in complexity. It also improves productivity, reduce testing cycle time, increase predictability and quality, and lower costs for insurance systems.
Data Centric Testing:
Data Warehouse and BI testing provide better insights helping Underwriting and claims departments. Testing large chunks of data helps to improve the quality and speed of application development and maintenance of an insurance application.
Security Testing includes identification of design and implementation risks of a new insurance system, customer Mobile Application Security Testing to secure customer journey, Network Penetration Testing to ensure there are no leakages from intermediaries’ contacts.