Category Insurance

Your function is in place and doing rather well. What’s next?

Category Planning

Part of the move from a reactionary supply chain function to a proactive one is the need to have a detailed category plan for all spends.

We have an in depth knowledge of insurance claims spend categories covering the key suppliers, market conditions and performance. Working with your key stakeholders we are able to provide these plans. Just as importantly, can execute them too.

A key element of any plan is a full and detailed data analysis. Not just the basic measures at this stage though. This requires a deeper dive to draw out fresh insights over cost control and performance.

Data drives everything we do, informed by years of experience. We have a deep understanding of what supplier data is telling us and the knowledge base to know how to best use it.

Systems

Running everything on spreadsheets and shared files only works for so long. We have worked on multiple vendor management platforms and e-bidding tools and been part of delivery programmes to implement them.

When they are implemented properly these platforms take the headache out of renewals and compliance. When implemented poorly everyone does everything they can to avoid the platforms so its key to get it right. Once we have received the financial data covering spend we are able to build a picture of what you are spending and where.

We have no links to any systems or platforms, nor any preferences. Each client will have different needs and levels of usage which will dictate the most appropriate systems to be employed.

Our aim is to build on your good foundations and take you to the next level.

You have got most of the basics. We ensure you have ALL the basics.

Measure whats missing.

Once we know what is needed, we provide a series of bespoke templates of what should be in place. This then provides the framework for a well functioning procurement and supply chain function.

This will cover the core areas of;

  • Compliance – contracts, due diligence, reporting and any regulatory requirements
  • Performance management – adherence to service levels and claims service delivery (including claims outcomes)
  • Category plans – what does the business require for each spend, what are the market conditions and what is our sourcing approach

We then provide a roadmap of activity with indicative timelines for delivery and a benefits case.

Whilst we may be supply chain and procurement focussed, we are insurance claims professionals at heart. We fully understand that claims indemnity and performance is key.

Commercial Performance

We have a great deal of experience when it comes to measuring the commercial performance of your claims supply chain.

Category by category we are able to compare and contrast so that you are aware of who is performing well and who is not. This then informs your review meetings and dictates the best use of sourcing activity.

By using performance data correctly it identifies your savings levers and sets in motion a programme of activity and expected savings outcomes.

There is a temptation in procurement to try and change everything. From experience not everything requires this and good performance needs to be recognized.

Our aim is to set the strategy to help you move to the next stage tomorrow and deliver benefits today.

We start with the basics. You cannot control your supplier spend if you don’t know what it is.

Follow the money.

Starting with your own financial records and known payees, we start to build up a picture of the likely spend.

We then cross referenced this against the suppliers own financial records. In this way, a true picture of the claims supplier spend is built up.

Working with your teams, we issue Raw data requests covering not just financials but key performance data and sub-spend detail. By way of an example, this might include the office location where the work was undertaken and the partner who actually did the work.

We then are able to build up a profile of what you are spending with what firms.

A lot of time and effort can be spent here trying to get the numbers to match 100%. Our best advice is to get to a matching rate of above 80% and stop.

Build a picture of your spend.

Once we have received the financial data covering spend we are able to build a picture of what you are spending and where.

We then discuss rates and negotiate client-specific rates rather than using the “walk-in” rates that suppliers typically apply without a formal agreement.

Other activity covered;

  • SLA’s established and agreed
  • MI requirements and frequency of reporting established
  • Draft contracts or terms of reference put in place

Our aim is to get you on the correct rates with management controls in place to ensure that the suppliers are adhering to best practice.

Our aim is to get the biggest bang for your buck – make savings and add a level of supplier management and compliance.

Simply put, we specialise in dealing with Insurance Claims Supply Chains. We have experience at all stages of a functions journey, from very beginning to highly evolved and add value at each level.

When working with Insurance Companies we typically find that there are five main stages of maturity of the claims supply chain. Each stage requires a different approach in order to maximise return on investment for the client.

That said, these stages and our approach is indicative of what activity is required and what the likely outcomes will be.

Each client is different, with unique requirements and expectations.

There is no generic approach, only the application of experience and expertise within insurance claims procurement.

STAGE ONE – GREEN FIELD SITE

  • No dedicated supply or insurance claims procurement staff
  • Total supplier spend not known
  • Rates sometimes recorded
  • No formal panel
  • Few if any signed contracts
  • Ad-hoc MI
  • Claims experts not vendor experts

If this describes your company, click here

STAGE TWO – STARTING ON THE JOURNEY

  • Individuals allocated to vendor management as part of wider duties
  • Formal panel exists
  • Annual spend is known
  • Semi-regular MI received from vendors
  • Some contracts in place

If this describes your company, click here

STAGE THREE – GOOD FOUNDATIONS

  • Dedicated Supply Chain and Procurement Teams
  • All vendors on client based contracts
  • MI received monthly in client format
  • Spend data is matched to client not vendor view
  • Claims audit regime in place
  • Formal review of SLA’s and performance

If this describes your company, click here

STAGE FOUR – MATURE FUNCTION

  • Vendor management and bidding software utilised
  • Contract management automated
  • MI and data sets absorbed into central data base for analysis
  • Audit scores (performance, compliance and ESG) centralised and monitored
  • Extensive category plans in place

If this describes your company, click here

STAGE FIVE – HIGHLY ADVANCED

  • Claims supply chain “Eco-system” is all connected and automated
  • Real time data feed and analytics
  • Predictive tools in place to feed into pricing and other areas of the business
  • Surge resilience adaptability
  • Real time measurements of capacity and failure points
  • Performance based work allocation in real time

If this describes your company, click here

You only know what you know. No matter how mature your claims supply chain function might be, you can never been 100% sure that you are getting the best deal. We have multiple data sets that form part of our benchmarking analysis service. Contact us or book a meeting for more details.

Examples of our data sets


PROPERTY REPAIRS

Builders and surveyors

We have full data sets covering the fees incurred, the claims outcome (fulfilled, cashed, zero settlement) and the final indemnity spend for surveyors.

For building repairs we have regional indemnity averages, national indemnity averages and claims management fees comparisons.

Contact us for more details

Loss Adjusters

Domestic and Commercial

At our disposal is a full set of fee data covering various claims types at every value banding.

Of course fees are only one aspect of a loss adjusters output and we have adherence to fee scale data as well as the all important average indemnity controls.

Contact us for more details

Third Party Administrators

UK and USA

Covering UK, USA and some other territories, we have an extensive data set on TPA’s.

Fees, conversions to Loss Adjusters, indemnity controls and claims outcomes are all covered. We also have data on low value claims as well as more complex and specialist claims.

Contact us for more details

LEGAL RATES

Global

Over the years we have built up a comprehensive set of legal rates covering most territories around the globe.

These are split by individual hourly rates according to seniority, by type of matter, and by the location the services would be provided.

Contact us for more details

Overall claims performance

Loss ratios to target operating models

Multiple data points covering the key metrics which provide valuable insights into how an insurance book of business is performing.

Our insights cover loss ratios, elapsed days from FNOL to closure, reopening rates, claims outcomes, average and total indemnity spend.

Contact us for more details

Irrespective of which class of insurance business you might be managing, there are consistent themes relevant to all that are helpful to bear in mind. With years of experience and a track record of delivery, we know what these are.

◉ Never just look at the fees. Your claims indemnity is always more important.
◉ Supplier behaviour is usually more important than the commercials put in place.
◉ Create an environment where good performance is commercially rewarded.


It also really helps if you are able to understand the procurement / supply chain process AND the insurance claims process. This is where we excel.

PROPERTY CLAIMS

Hands on claims experience

We have managed claims, claims teams, repair networks, built contents supply chains, created TPA functions, and run loss adjuster panels. This has been done this as a supplier to the industry and on behalf of global insurers. We undertook a full review of the primary UK Third Party Administrator (TPA) followed by an in depth file review audit.

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MOTOR CLAIMS

Extensive industry experience

We have re-engineered repair network processes, implemented IT projects and claims functions, reimagined salvage provision, and negotiated multiple ancillary product line deals o behalf of multiple insurers. We found multiple legal firms being deployed across multiple classes of business with inevitable scope creep.

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TRAVEL

Largest UK bank

We have run a full blown multi year, multi product travel insurance tender. Starting from mapping out all requirements to the final implementation of a new provider. Here we worked with a very talented Cyber team who had in-depth knowledge a crystal clear vision of what the output needed to look like.

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LONDON MARKET

Top 5 syndicate

We have run tenders and managed all manner of suppliers across all classes of business within a leading Lloyds of London syndicate. We ran a formal process to find an outsourced claims solution to take low value and run off claims following an acquisition.

More Detail

Extensive experience of product, service and supplier evaluations for travel claims. Multi million pound tenders undertaken and implementation of new providers.

PACKAGED ACCOUNTS

Strategy and procurement

On behalf of a major UK bank we undertook a complete market review of the packaged account provider.

We designed a and issued an RFP and launched a full blown tender process to ensure that the banks customers received value for money. We were able to identify and recommend a new provider and a transformation project launched to move from the incumbent to the new provider.

HIGH NETWORTH PRODUCTS

Sourcing and re-negotiation

The premium high net worth bank asked us to run a market review to ensure that the best customer value was being realised for their premium product lines.

A through market review across multiple brand identities was launched in conjunction with multiple highly involved stakeholders.

Renegotiation of terms and conditions were concluded with all parties very satisfied.

UPGRADES AND MEDICAL

Evaluation and implementation

In many ways the standard travel product is the easy bit. The upgrades (voluntary) and medical conditions (prescribed) are the hard bit.

Working with third party medical assessment providers we were able to navigate our client through industry applied scoring to ensure that we could provide a continuation of cover even with a change of provider.

Full motor claim supply chain experience and demonstrable track record of achievement.

REPAIR NETWORKS

Strategy and management

On behalf of a major global insurer we have designed the repairer strategy, tendered to the market and implemented a new repair solution.

Using multiple data points and sources with target average repair costs we were able to rationalise a network and make operational improvements with target cost deductions achieved. As importantly, we have significantly improved customer service metrics.

VEHICLE GLASS

Sourcing and negotiation

We have renegotiated multiple glass deals over the years. Because of the nature of fixed unit price deals, a change in book can leave the insurer at a considerable disadvantage. Coupled with rising costs and inflation we believe it is often a requirement to review commercial deals more regularly than previously done.

Changing technology has also led to the requirement for multiple supplier panels which we have successfully implemented.

MOTOR SALVAGE

Design and implementation

Sometimes it’s not just changing the supplier that is required, but the entire process.

And the supplier.

Working with a motor client we completely redesigned the salvage process Starting with when the agent was deployed, to onsite engineering led categorisation, inside storage, and then the auction process.

Not only was the final product exemplary from a compliance standpoint, but returns back to the client were also improved.

PARTS AND PAINT

Commercial negotiation

Negotiating parts and paint on behalf of a large retail insurer.

Using multiple data points from within the business we were able to renegotiate commercial deals to reflect a growing and changing book of business and make it as future proof as we could.

Having previously worked for contents providers we are uniquely placed to provide insight and strategy for insurers when it comes to contents spend.

IT AND LEGAL

Consolidation and procurement

Claims IT in motor was delivered as a programme of works to consolidate outdated technology deals and combat a complex pricing structure that saw overlapping charges at multiple points.

Similarly a consolation of legal firms and introduction of more fixed menu pricing created sizable savings.

Insurance claims specialists based in London

I started life as a graduate trainee loss adjuster dealing with domestic and commercial claims in east London. Having progressed to managing teams and then running building repair networks I then joined a global insurer where I then ran the claims supply chain. What this means is that I understand claims and the eco system of a claims supply chain across multiple classes of business.

Founded by Ian Guest

  • Procurement and supply chain consultant for two of the largest UK insurers
  • NED for a leading UK motor repair network
  • Business development with a commercial and marine cargo salvage provider
  • Adviser to a direct to insurer building repairer
  • Project manager for a joint venture in property TPA space
  • Consultant to the largest UK bank for travel insurance proposition and technology renewals
  • Procurement consultant looking at all claims spend for one of the largest London syndicates
  • Head of research and innovation for a building repair network
  • Chief Operating Officer for specialised building firm
  • Claims supply manager for a global insurer