Using the right risk management information system (RMIS) is the key to unlocking your organization’s risk and insurance data. A RMIS provides a centralized tool with which risk professionals can aggregate, analyze, and report on their organization’s risk and insurance-related information. Used correctly, a RMIS generates actionable findings, promotes efficient processes, and supports seamless customer interactions.   

Many risk professionals are initially introduced to a RMIS when it’s provided in a bundled version by their organization’s insurer, third-party administrator (TPA), or broker. A bundled system is an excellent way to familiarize yourself, your team, and your organization with RMIS functionality and capabilities. There may come a time, though, when a bundled RMIS won’t be able to meet an organization’s expanding needs. When this is the case, a company may benefit from purchasing its own standalone — also known as an “unbundled” — RMIS solution.  

WHAT IS A BUNDLED RMIS? 

As mentioned in Bundled or Unbundled RMIS: That is the Question? — an article by RiskTech consulting firm Redhand Advisors — a bundled RMIS is a system that’s provided by a broker, TPA, or insurer that the company is under contract with. 

The pros of a bundled RMIS are: 

• COST: Associated system costs are typically included in the total services from the carrier or TPA that’s providing the RMIS. 

• REAL-TIME & ROBUST CLAIMS DATA: A bundled system instantly provides extensive claims and policy data from your carrier for analytics and reporting. 

• DIRECT CONTACT: A bundled RMIS enables continuous communication with your insurer or claims management team.  

• SIMPLE: This option offers more basic features and less complication than an unbundled RMIS.   

The cons of a bundled RMIS include:  

• AVAILABILITY: The system can generally only be used while you are under contract with the providing entity.  

• COMPATIBILITY: This software can only be used to store, analyze, and report on data from the providing entity, and it is not designed to communicate with other bundled systems. Organizations with several carrier, TPA, or broker relationships will be unable to get a comprehensive view of all of their data as a result.  

• DATA INTEGRATION: Integrating data across multiple siloed systems or departments necessitates special modifications to the system and/or its users’ manual processes. 

WHAT IS AN UNBUNDLED RMIS?  

An unbundled RMIS is owned outright by an organization. Companies purchase an independent software solution from a RMIS vendor that supplies both the technology and ongoing support needed to best optimize the platform for the organization’s specific needs. These systems generally integrate with an organization’s existing software systems; companies are provided with a seamless, comprehensive risk profile.  

As covered in the Business Insurance article Pros and cons of bundled and unbundled RMIS systems, the pros of an unbundled RMIS include:  

• DATA ANALYTICS AND REPORTING: Data from multiple sources — i.e., insurers, TPAs, and others — can be integrated and standardized. 

• ADAPTABILITY: These systems can be configured for a variety of users and uses and can be implemented with personalized viewing and editing capabilities on a per user basis.  

• ADVANCED SECURITY: Specialized options allow for secure access across the entire organization and with external vendors and partners.  

• OWNERSHIP: Risk data and systems are under the control and ownership of the company, which is particularly beneficial if there is ever a change in relationship with a bundled system provider. 

The cons of an unbundled RMIS are:   

• COST: There is a higher financial investment for companies that choose to purchase their own system. 

• TIME AND RESOURCES: Your team will need to learn and adapt to a new, more sophisticated system.   

WHEN IS THE RIGHT TIME TO MAKE THE SWITCH? 

It’s important to consider the size and complexity of your organization’s risk management needs, your technology budget, and internal resources when deciding whether your organization is best served by your current bundled system or if it’s time to explore an unbundled option.  

If your business uses a single TPA or carrier, has few locations, and your software needs are limited to claims information and management, you will likely continue to be well served by a bundled RMIS.  

If your organization has more intricacies or desires a software that can perform more sophisticated risk and analytical functions, though, it’s time to think about taking the plunge on an unbundled RMIS. Consider the following questions to discern which system type is most ideal for your company:  

• Do you have complex risk management needs that are not being met by your current bundled system?    

• Do you find there are disconnects or excessive needs for manual input because your systems are not universally integrated?  

• Do you have the budget to invest in an unbundled system?  

• Do you have the resources to help steer and test during system implementation and then work with the vendor’s service team to manage an unbundled system?  

Depending on how many variables are at play, it can be difficult to achieve a truly holistic view of your company’s risk profile when using a bundled RMIS.  

WHAT’S BEST — A BUNDLED OR UNBUNDLED RMIS? THE ONE THAT MEETS YOUR COMPANY’S NEEDS 

RMIS technology — bundled or unbundled — is a game changer for organizations seeking to ditch manual entry and spreadsheets for an efficient, tech-forward way to manage risk and insurance information. The question is not whether a bundled system is better or worse than an unbundled system. Instead, the question to ask is: What does my organization need, and which system can best help us meet those needs?  

If you find yourself frustrated with disjointed systems, relying heavily on manual input or arduous workarounds to address complexities within your organization, or simply feel that a more powerful system could offer your organization a stronger, more comprehensive view of your risk profile, it’s time to explore your unbundled RMIS options.  

To learn more about whether an unbundled system might be right for your organization, contact us to request a demo.