- In This Issue
Risk Containment Strategy
The Austrian-based ANDRITZ Group uses a leading-edge risk managment tool to keep a lid on insurance premiums
This article was published in the Q3 2010 issue of Aon One, September 2010.
Through a combination of organic expansion and more than 30 complementary acquisitions and joint ventures, sales for Austrian-based ANDRITZ Group, a global manufacturing, technology and services company, have increased by an average of 15 percent annually since 2000. Along with this expansion, ANDRITZ experienced a challenge common to high-growth companies: the efficient aggregation and analysis of loss and exposure data.
Between 2000 and 2009, ANDRITZ nearly doubled its number of production sites and increased staff by 220 percent. Recognizing the importance of efficiently aggregating and analyzing the growing volume of loss and exposure data, in 2007 the insurance team selected RiskConsole, a customized risk management information system (RMIS), from Aon eSolutions to help the company attain those objectives.
The results? The RiskConsole property module has helped ANDRITZ contain premiums by improving the accuracy and comprehensiveness of the property data submitted to underwriters. What's more, by producing instant, accurate property valuations, real value is generated through risk mitigation and administrative efficiency.
The insurance department is codirected in the United States by Monica Rifenburg in Roswell, Ga., and Werner Lindenthaler in Vienna, Austria. We spoke with Rifenburg about ANDRITZ's experience with RiskConsole and the property module.
Q: What led you to implement a risk management information system?
A: The insurance team had previously relied on Excel- and Word-based manual processes to collect local property data and prepare statements of value, and we were doing it all by hand, which took a tremendous amount of time on the front end. Identifying and correcting the errors that inevitably arose from copying, pasting and inputting data was also time-consuming. We decided we needed a risk management information system [RMIS] that would streamline our processes and put us in a position to be confident in our figures and data.
Q: What were you looking for in a risk management partner?
A: We needed a technology partner willing and able to deploy an RMIS customized to the company's specific needs and organizational structures. We had a clear vision not only of what we needed an RMIS to do on a functional level, but also what we wanted to achieve on a strategic level.
Q: How did Aon eSolutions tailor RiskConsole to meet your needs?
A: Our customized version of RiskConsole and the property module is based strictly on ANDRITZ's priorities and structures. What's more, Aon eSolutions continues to assist us in meeting needs as they emerge. From the beginning, Aon eSolutions appreciated our unique situation. We encountered challenges during implementation, which we expected due to the complexities of our system and organizational requirements, but the outcome has been good.
Q: What have you gained from using RiskConsole?
A: We selected RiskConsole for its advanced functionalities, as well as its flexibility. By using the property module, we have gained the data aggregation, consolidation and reporting capabilities to support a steadily growing global company.
Q: What plans do you have for expanding use of RiskConsole in the future?
A: We are considering further leveraging the value of RiskConsole by deploying additional advanced functionalities related to premium allocations [now still a manual process]. In addition to new administrative efficiencies, local managers and controllers would then have almost instant access to a complete picture of their premium allocations. Accurate and comprehensive data—and easy access to that information—is the key to ANDRITZ's confidence that its property risk evaluation is based on accurate and easily accessible data.
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