Asset management can reduce costs

Keith Dolby of Real Asset Management explains how IT audits can cut insurance premiums
James Murray

IT Week: How can improving your asset management processes and systems lower insurance costs?

Keith Dolby: It is not immediately obvious but the savings are real and significant. We were put onto the trend by a customer that came to us after being told by its insurer that they would get a reduction in their premiums if they carried out a proper IT asset audit. The scale of the savings was not mentioned initially but after we did a full audit their premiums came down 49 percent. If you think that this was a large organisation, 49 percent is a significant amount of money and the savings more than paid for the audit within a year.

On what type of insurance policies can these savings be made, and how can improving asset management processes deliver such a large saving?

It applies to a company’s general contents insurance and the savings come from two main areas. First, having proper asset management processes, regular audits and a central registry reduces the insurer’s risk that in the event of assets being lost or damaged it pays out to replace assets that never existed. And second, in most cases, carrying out an audit will mean the company can ask for insurance for fewer machines.

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source:http://www.vnunet.com/itweek/analysis/2194262/asset-management-reduce-costs