Risk managers explore a new direction with API technology

Zurich’s API connectivity, believed to the be first offered by an insurer to international customers, is now being used bi-directionally, allowing risk managers to both receive data and send it to the insurer through their risk management information systems (RMIS).

The bi-directional functionality creates an even more efficient way to use API technology to prevent losses, according to Zurich. Risk engineering reporting is streamlined, data is swapped easily and faster between the risk manager and insurer, and eliminating repetitive tasks reduces errors.

Prologis is Zurich’s first customer to use the API to swap information both ways in real time and others are planning to begin using the technology bi-directionally.

“With Prologis, both sides are looking at the same data at the same time, fully transparent, as if the data is in one place,” said Armin Schäfer, Zurich’s Head of Digital and New Technology, International Programs, Commercial Insurance.

“The API has saved us time and provided us the ability to better track our data,” confirmed Casey Markovic, Manager Risk Management at Prologis. The company began using the technology earlier this year to exchange information with Zurich.

Before implementing the API with its RMIS, Prologis received risk engineering reports in PDF form, Ms. Markovic explained. “While these reports contain so much great data, including loss scenarios, benchmarking, risk improvement actions, risk gradings and natural hazards information, there was no easy way to digest it all. We would spend time creating multiple excels, manually entering the data,” she said.

“With API, almost all of those data points are integrated into our risk management information system,” Ms. Markovic continued. “I am now able to click a button and easily run a report with our most up-to-date risk engineering visits. We also track our claims within our RMIS, so we are able to easily cross reference risk engineering visits and improvement actions to claims activities.”

By eliminating the need for multiple reports, the API allows Prologis to more efficiently track operations teams’ responsiveness to risk improvement actions and relay the information to the company’s insurer, Ms. Markovic pointed out. “Now, with the API, their responses are input into our system, tracked within our report and relayed to Zurich for approval.”

There are a number of benefits for customers who use an API connection, according to Mr. Schäfer. “It enables risk and insurance managers to have real-time and consistent transparency of their insurance and loss portfolio data,” he said. “This allows risk managers to make better, faster decisions across that portfolio, enhancing their loss prevention efforts.

And, because API technology replaces traditional ways of swapping information such as through emails with documents attached, it cuts out administrative inefficiencies for both the risk manager and insurer, Mr. Schäfer remarked. “It allows risk managers to work with their RMIS only – one system handles it all,” he added. “Relevant data is flowing from and to the insurer’s systems in a continuous, secure and real-time connection.”

Risk managers “can see what the insurer sees,” Schäfer noted. As information such as updates in loss prevention or exposure characteristics, for example, are passed between the users, both are “fully in sync,” he said.

Since Switzerland-based Nestlé began connecting with Zurich in one direction around four years ago through a RMIS API interface, other companies, including building materials manufacturer Knauf Group, a large food retailer and a global investment management firm have begun working on implementation.

API connectivity is useful throughout the loss prevention lifecycle, Schäfer explained. It facilitates the sharing of information that includes:

• Risk surveys and customer self-assessments
• Risk improvement actions defined by the insurer
• Loss prevention activities across locations
• Regular updates between the customer and insurer regarding markets, locations and other criteria

Sharing information through API technology is more secure than with traditional methods such as email with documents attached, Mr. Schäfer pointed out. “System to system, API connectivity is equipped with state-of-the-art security measures to protect customers’ data,” he said.

“API connectivity is an additional step in our move towards a fully digital and seamless customer experience along the loss prevention lifecycle,” Mr. Schäfer said. It fits with Zurich’s other risk assessment tools that include Zurich Risk Advisor, which allows customers to perform risk self-assessments; Zurich Risk Onsite, a tool risk engineers use to share risk assessment reports with customers; and My Zurich, which provides customers with a way to quickly monitor risk management information in real time across all of their locations, he said.

“With API technology that provides bi-directional connectivity, we’re closing the loop for insureds who have a RMIS in place for loss prevention administration,” said Mr. Schäfer. “It’s turning loss prevention data exchange into a zero-touch immersive experience.”