Our site uses cookies

I agree Our site saves small pieces of text information, called “cookies” on your device. Find out more in our cookie policy. You can disable the usage of cookies by changing the settings of your browser. By continuing to browse the site you are agreeing to our use of cookies.

Saving insurers costs with efficient claims processes

Insurance firms will find that the strategic procurement of goods and services coupled with streamlined claims management processes can lead to considerable cost savings.

For insurance firms looking to streamline costs, implementing effective claims management processes can lead to significant savings. In order to do this, an in-depth analysis of how goods and services are being procured will be crucial – what are the procurement skills, processes and infrastructure currently in place? 

The next question that organisations should ask themselves is, do we have robust claims handling practices and guidelines in place, and are they consistent across departments? If the answer is ‘no’, then consider engaging cross-functional teams in procurement, claims, sales and product development to look at two sets of factors – internal and external.

Internal factors include how claims processes are structured and the metrics used to reach settlements. For example, are standardised systems in place to calculate depreciation? If someone calls in and says they have lost an iPad that is two years old, can the claims handler look up the current value? Changes to the ways claims handlers interact with customers and suppliers can have a potentially huge impact on cost savings.

office equiment

External factors could include whether a supplier network has been developed to carry out repairs or supply replacement goods as needed, and on financial terms that you have agreed.

As with any reforms, success will be dependent on the ability and willingness of staff to change. Claims handling staff should be upskilled to change the way they approach claimants, while different customer profiles should have specific claims handling referral dialogues, which apply across all claims.

Training must be provided widely, including on-the-job experience, with a customised formal training and coaching programme for procurement staff. Resources for training should be made available, while Efficio consultants are skilled at supporting existing teams, cooperating in each work stream as a single multi-functional team.

To ensure that improvements continue long-term, a tracking system including key performance indicator (KPI) definitions, a benchmarking tool for realised-versus expected savings and information for staff on how to obtain the KPIs on a monthly basis will be crucial.

Many businesses within the industry will find that implementing a successful procurement transformation programme along with staff training, and introducing transparency across business processes and category expenditure will all lead to significant firm-wide cost savings.
 

 Tesco and Carrefour to combine purchasing power
Insight
Tesco and Carrefour to combine purchasing power

French supermarket giant Carrefour and Tesco have announced plans to form a long-term strategic alliance to leverage their joint purchasing power with suppliers.

Three key strategies to deploy in a demerger
Guide
Three key strategies to deploy in a demerger

What is the role of procurement in a demerger? Is it to manage operational risks, reduce costs or both?

Watch out for cosy deals and handshakes
Insight
Watch out for cosy deals and handshakes

Published in Raconteur's Future of Procurement, Ian Bolger is quoted on the importance of balancing personal business relationships and an ethical approach to procurement.

Delivering sustainable and measurable value at GTM
Case study
Delivering sustainable and measurable value at GTM

For commodity-based businesses, price fluctuations make it difficult for procurement departments to deliver savings and measure performance. Efficio developed a solution allowing GTM to achieve both.