Third-party administrators most in transition in RMIS market: ReportReprints
Different parts of the Risk Management Information System market have developed at different rates, but all are improving or looking to invest in the next year or two, according to a report Thursday.
The report was issued by David Tweedy, director of RMIS at Providence, Rhode Island-based Bickmore Risk Services, and Patrick O’Neill, founder and president of Atlanta, Georgia-based Redhand Advisors L.L.C.
Third-party administrators have perhaps seen the most change recently as they try to remain competitive with fewer resources than insurers, the report says.
“Of all of the subsectors of the RMIS industry, the third-party administrator sector is the one that is the most in transition,” the report says. “As will become obvious, there has been a lot of investment and improvement in the TPA sector regarding information technology since the last functional system comparison in 2015.”
Insurers have also been improving their information systems, “although not at the same rate as the TPA,” notes the report.
Given this, insurers are likely to move to further enhance their capabilities. “Insurers are definitely looking to expand their system capabilities to meet the growing expectation of their policyholders and to ward off increased competition by the TPAs,” the report says. “Look for them to expand their functionality base over the next few years.”
The independent market remains strong and may see increased competition as some players mature.
“The long-term players in the market, Marsh, Clearsight and Ventiv, are moving in the right direction with new leadership and expanded functionality,” the report says.
It adds, however, that “Origami Risk and Riskonnect continue to invest and grow rapidly. We expect competition will intensify during 2018.”