MIMS IC Benefits
Taking out traditional insurance policies is a way of writing-off losses over several years in return for paying the insurance company’s expenses and profits. For larger companies and local authorities these are multi million pound annual expenditures.
A more financially sound approach, enabled by the use of MIMS, is to capture both incidents and claims and to manage as much of the resultant loss as possible ‘in-house’.
The benefits can include considerable savings arising from self insurance (by reducing the cost and profits of insurers providing these multi million pound insurance programmes).
- As well as avoiding the Insurance company costs and profits, cash is retained for longer and the opportunity also exists to collect investment income.
- Independence of data ownership also avoids any ‘lock-in’ to brokers or insurers who may offer the use of similar systems.
- The increased volume of records (due to the inclusion of incidents that are not recorded by Insurers) allows a far more insightful data analysis enabling the promotion of better focused loss prevention initiatives.
Insurance is still required to cover the larger losses that may be the result of extreme events and MIMS provides the ability for the integration of self-insurance (locally paid, corporate virtual captives and captive insurers) with these excess levels.