The missing link reveals
the bigger picture

With an 11 year history of conducting business and consulting with insurers who either have very similar if not the same funeral products, the risk mitigation process and the processes and procedures that support it are areas that we feel we can add enormous value to our clients.

It is quite common for insurers to follow a top down approach regarding the management of risk mitigation. Unfortunately the problem with this approach, is that it underestimates the importance of data. However, looking at risk mitigation from the bottom-up shows a much bigger picture of what is required in a sound risk mitigation framework.

A risk mitigation foundation should tick these 5 boxes:

This type of foundation in risk mitigation addresses the timeous scrutiny as well as a proactive management of risk.

For a risk mitigation framework to be deemed a success, it should be seen to deliver better informed and timelier decision-making capabilities.

An algorithmic risk model will have the ability to monitor and conclude, in near real-time, the propensity of fraud of a claim, and the cumulative risk profile of a claimant with multiple claims ( robotic functionality in conjunction with historic captured industry data), each day.

Intelligent decisions are made with a central data repository

Automated and systemised reporting gives visibility to all these risk mitigation benefits, but this can only be achieved if the reporting is informed by granular, bottom-up captured data.

Good risk mitigation requires data capturing and feeding automated workflow-type systems to give operations management access to the data required for daily activity purposes. In turn a central data repository would give executive management access to the data required for business intelligence purposes.

Capturing the correct data at the point of origination, which is usually via a call centre, can prove critical to ensuring that the right individuals discuss, monitor and manage the risks appropriate for consideration, this should be at operational and executive management.

The answer is a combined and integrated workflow which represents an excellent opportunity to gain both board commitment and business unit engagement on the topic of holistic data capture and data management.

The question to ask is does your business management have the opportunity to assess whether high fraud ratios are meeting the hurdle rates for different risk profiles? Can your executive management review if business for a particular segment or region is meeting its targeted risk-adjusted returns?

Unusual, unintended, or unacceptable risks should be isolated and reactively managed.

Proactive risk management is only possible when data management is a strategic goal.

The point about captured data being the foundation of all things is that no investment in solutions will work without good captured data, which brings us full circle back to the need for data at the bottom end to be looked at and for a Risk Mitigation Platform to be underpinned by increasingly accurate, relevant and timely data. Delivering an enhanced enterprise risk management framework requires considerable planning and substantial investment in data capturing too, but it is well worth the effort.

If you require a solid risk mitigation foundation that addresses best practice principles and methodologies, complete the form for a free demonstration of Veritas Propensity of Fraud Model with

Mouna Eksteen
Executive head