Optimizing Claims Management through Strategic Procurement

- Insurance companies can spend up to 80%   of total premiums on claims. - Efficient claims handling is crucial for   profitability. - Claims departments have been historically   under-managed from a procurement   perspective.

1. Optimizing Claims Department through Strategic Procurement

- Increasing reliance on third-party vendors   for critical activities. -  Importance of balancing cost reduction   with quality of services. - Embedding procurement in the claims   management process can bring strategic   benefits.

2. Role of Procurement in Claims Management

- Strategic cost reduction - Enhanced supplier relationship   management (SRM) - Improved contract management

3. Benefits of Procurement and Claims Collaboration

- Legacy supplier relationships can lead to   inflated costs. - Procurement can introduce competitive   pricing and updated offerings. - Total Cost of Ownership (TCO) approach  for vendor selection and negotiations.

4. Reducing Costs in the Claims Department

- SRM can provide long-term value and   competitive advantage. - Aligning suppliers' goals with corporate    objectives. - Data-driven performance monitoring for   efficiency and cost reduction.

5. Strengthening Supplier Relationships

- Legacy contracts often lead to   suboptimal terms. - Establishing standardized   contracting workflows. - Proactive contract management for   pricing compliance and renewal   strategies.

6. Contract Management for the Claims Department

- Claims, Underwriting,  IT/Telecom,   Marketing,   Professional Services, General  Services. - Key claims projects: Independent   Adjusters, TPAs, Claims Services, etc.

7. Spend Categories and Projects

- Close collaboration between procurement  and claims management is essential. - Potential cost savings up to   10% on third-party spend. - Improved claims management process  and customer satisfaction.

8. Unlocking Value through Strategic Procurement

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