Introduction
The level of procurement maturity within the insurance industry has traditionally lagged significantly behind other industries such as manufacturing, consumer packaged goods, and energy & utilities. With increasing financial pressures, insurance carriers have started looking for ways to reduce their costs. This has brought the procurement organization to the center stage. There are numerous challenges though in developing an effective sourcing and procurement program for insurance companies. Suppliers are normally deeply embedded within the insurance carriers' core processes, so it can be difficult to switch suppliers while maintaining high levels of customer service and ensuring a hassle free claims experience for the insured.
In this white paper, GEP recommends three key focus areas to help insurance companies deliver increased savings on spend with external suppliers, mitigate risk through more effective supplier contracts, and make more informed business decisions through timely market intelligence.