- 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.
- 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.
- Strategic cost reduction - Enhanced supplier relationship management (SRM) - Improved contract management
- 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.
- SRM can provide long-term value and competitive advantage. - Aligning suppliers' goals with corporate objectives. - Data-driven performance monitoring for efficiency and cost reduction.
- Legacy contracts often lead to suboptimal terms. - Establishing standardized contracting workflows. - Proactive contract management for pricing compliance and renewal strategies.
- Claims, Underwriting, IT/Telecom, Marketing, Professional Services, General Services. - Key claims projects: Independent Adjusters, TPAs, Claims Services, etc.
- 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.