In the face of mounting risk and rising premiums, business insurance is fast climbing up the cost savings agenda of large global enterprises. Organizations are increasingly looking toward procurement to optimize their insurance costs and drive more value from their spend.
Purchasing business insurance has traditionally been a “specialist” domain. Involving procurement in the purchase of business insurance can be quite a challenge due to the rather complex workings of the market, the difficulties of identifying and covering risks, and the general aversion of risk managers to accept procurement support.
Nevertheless, procurement can add a lot of value and minimize the total cost of risk by bringing greater transparency and accountability to the insurance purchasing process.