Introduction
Insurance carriers are witnessing slow but certain changes to the insurance ecosystem. “Insurtech,” such as telematics and advanced analytics, has been steadily recalibrating consumer expectations; and this, combined with slower economic growth, increased M&A activity and rising regulations, is creating significant challenges for carriers seeking to grow profitably. Extreme financial pressures on the carriers and leadership teams are leading them to look to procurement to help them achieve their financial objectives.
While some procurement organizations have evolved in recent years and become more mature, others have traditionally been doing tactical work: responding to contract requests, running RFPs, and so on. With increased expectations from leadership teams, procurement is being challenged to play a more strategic role and come up with new ways to optimize the total supplier cost while still meeting business objectives.
In this white paper, we discuss key levers beyond traditional methods of cutting costs which procurement can use to significantly reduce total claims costs, mitigate supply risk and enhance the customer experience.