AIRMIC 2023: Data demands increase in face of rising risk threats

Risk managers are increasingly demanding more data as they fight to get ahead of the risks in a market which is seeing new challenges.

Speaking at the Airmic Annual Conference Simon Hiscock client director at Sedgwick said that risk managers are becoming increasingly demanding to access greater data insight in order to structure their risk management strategies.

“We are finding that in the conversations with the risk managers we are being asked to tell them how they can stop accidents before they happen,” he explained. “They are asking for data on their claims, what those claims are, why they are happening and what they can do to manage them.

“There is a growing demand for support to identify the trends and stop the accidents.”

As such Hiscock said Sedgwick and the wider industry are having to invest heavily in new technology and tools which can generate and manage the data and deliver it to risk managers in the way they want it delivered.

“Our clients now have access to their own specific portals on which they can see their individual trends, analytics and data,” he added. “It allows then to identify pinch points and act to better understand and manage them.

“It has moved beyond simply claims handling to the delivery of data and trend analysis.”

The rising costs of insurance and the changing risk environment has also seen increasing numbers of companies looking to captives as a solution to mitigating their risks.

“Captives are playing a bigger role,” he explained. “We are still seeing a hardening market, so the size of premiums has seen companies believe that it is better to keep more of their risks in house and establish a captive as a home for those risks.

“What it means is that they will seek to outsource the roles which require a high level of experience, and the use of better data management has been a real enabler in that process.

“As they take more risks, they are looking to enter into third party agreements to bring their data together, and it has created the need for companies such as Sedgwick to become involved in the front end of the process.”

The changing dynamics of the risk management needs and the greater reliance on technology will change the skillsets needed in the market Hiscock added.

“Digital tools are building greater trust,” he explained. “For instance, the use of pictures and videos in the claims process is enabling the clients to see a visual explanation of the claim and the decision which require to be made.

“Clients want consistency, and we have to work to ensure that we can get the systems in the right place and at the right time in the process.”

As such Hiscock said the industry will require a new generation of staff which will bring with them new skills which will augment the established skills needed for the claims process.

“We need to ensure that we have systems in place to support new staff and develop their skills in what is a market which is undergoing significant changes, many driven by the better use of technology.”