Risk managers generally happy with risk software but areas for improvement, finds AMRAE

Risk managers are mostly happy with their risk management information systems, but believe improvements can be made to ensure they better interface with other business software and boost reporting capabilities, according to a report published by French risk management association AMRAE. The 11thissue of AMRAE’s annual guide on risk management software is based, in part, on a survey of 570 risks professionals across 36 countries. This is up from 320 respondents in 2018. Fifty-four percent of risk managers surveyed said they have already used some kind of risk management software. Within this group, 71% said they are happy with the products they have used. This is slightly lower than in 2018, when the level of satisfaction was 73%, but remains fairly high. However, not all capabilities are meeting risk managers’ needs. Most disappointing is the level interaction with other kinds of business software, which still falls below the expectations of 58% of users polled. This is a significant increase over 2018, according to the report’s authors. Higher levels of discontentment were also registered over support and integration services offered by risk management software providers. Here, negative responses were up 10% to 37%. Reporting capabilities were disapproved of by 38% of users surveyed. Crisis management modules were deemed unsatisfactory by 40% of respondents. Reporting is an important tool that is highly valued by risk managers. It was chosen as the second-most important criterion when choosing risk management software, up from fifth last year. The most important factor in purchasing decisions is user-friendliness. However, 37% of users said their systems are not as easy to use as they would like. The survey also found that most companies are only willing to spend up to €100,000 on risk management information systems. Some 56% of those surveyed said this is their budget. On the other hand, the survey found a small but, in the authors’ view, significant increase in the number of companies with budgets of more than €1m for such projects. In 2018, only 1% had that kind of money available to implement risk management information systems, while in 2019 it was 3%. AMRAE’s survey also has found that more companies are looking to adopt risk management software systems. Some 62% of vendors surveyed reported an increase in the number of tenders by companies in the past year. It is the highest number since 2013. Reflecting the growing importance of the environmental, social and governance (ESG) agenda to risk managers, AMRAE polled software vendors on whether their products help users with sustainable development and ESG topics. Just over a quarter (26%) said that they do. Another new question referred to data protection capabilities, which are offered by 64% of vendors. AMRAE vice-president François Baume, who is also vice-president of risk and insurance at Sonepar and one of the study’s authors, noted that fewer vendors answered the survey this year than in 2018. He said this is partly because the sector is going through significant change that has cut the number of providers. “The risk management software market is in a state of change,” said Mr Baume. “There have been a certain number of mergers, acquisitions and partnerships and, as a result, fewer companies are evaluated in this year’s study.” Some companies have been acquired by investment groups. For example, the risk management software arm of Thomson Reuters was purchased by Blackstone, and eFront was bought by Blackrock. But there have also been M&A deals within the industry. For instance, BWise was acquired by SAI Global, Rsam by ACl and Marsh ClearSight by Riskonnect. AMRAE’s latest survey and guide on risk management software highlights the association’s increasingly international scope. For the first time, the guide was published originally in English, with a French version made available afterwards. Both can be downloaded from AMRAE’s website. The guide was first presented at the annual RIMS conference, which took place this May in Boston. RIMS is among several organisations that contributed to the report, along with AGRAQ (from the Canadian province of Quebec), IRM Qatar, Ferma, Parima and members of Club Franco Risk, the group of French-speaking risk management associations spearheaded by AMRAE.

Risk managers generally happy with risk software but areas for improvement, finds AMRAE

Want to read this article?

Read Next

Ferma members told AI will bring risk and reward for corporate insurance buyers

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Mapfre Global Risks boosts profit by 58% despite reduced premiums

Ferma members told AI will bring risk and reward for corporate insurance buyers

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Mapfre Global Risks boosts profit by 58% despite reduced premiums

Want to read this article?

Read Next

Ferma members told AI will bring risk and reward for corporate insurance buyers

Warmer climate spreading risk of malaria and dengue to new regions

UN launches new net-zero insurance forum to replace NZIA

Pen extends fleet capacity deal with Zurich in Republic of Ireland

Mapfre Global Risks boosts profit by 58% despite reduced premiums

Related Articles