Insurance Claims and Procurement departments are disjointed at best, antagonistic at worst.
Claims organizations typically underutilize procurement disciplines, while procurement departments misconstrue what matters to claims—both of which fuel a misguided turf war. And in the ensuing battles, everybody loses.
The cost of procured products and services from third-party vendors heavily influences the economics of claims, and procurement is typically an uncomfortable partner in this process. Improving the strategic planning, sourcing and management of billions of dollars spent on products and services can strengthen claims’ performance as a driver of competitive advantage for the insurer, leading to greater efficiency, more accurate loss ratios and enhanced customer engagement.