Can Procurement Optimise your Insurance Strategy? 

With world events as unpredictable as ever, managing risk within your organisation has become drastically more important. Therefore, it is imperative that you get the correct level of insurance coverage to suit your business needs. Procurement can help play a vital role here, not just in getting you the correct coverage, but also ensuring that you have an insurance broker that is working for you. 

1. Finding the right broker 

Finding the correct insurance broker can be as crucial as selecting the correct policies and coverage levels. Your broker analyses the market, as well as your claims history and risk profile. From here, they make recommendations around your coverage, as well as working with insurers to identify opportunities for you to improve your organisational processes which can subsequently lead to lower premiums. Therefore, it is important that you are reviewing whether your broker is currently working to reduce both cost and risk for your business. 

You should consider reviewing your broker’s performance at the end of each contracted year. Have premiums come down? Has your broker been putting regular calls into the diary to discuss renewal strategy? If not, it may be time to consider an RFP to identify whether another broker could potentially serve you better. Procurement can assist here by launching the RFP, comparing potential broker remuneration as well as helping to set clear KPIs that will measure your broker’s performance at the end of each contracted year. 

2. Optimising Insurance Procurement 

There are other ways in which procurement can help optimise the way your organisation purchases insurance. Firstly, procurement specialists are swift negotiators and understand how to leverage the best possible terms. By negotiating deductibles, coverage limits and premium structures, you can achieve the best possible coverage. 

Procurement can also streamline the renewal process by utilising data captured from previous renewals. By proactively monitoring upcoming renewal cycles, procurement can aid organisations by ensuring they have everything in place to enact a timely insurance renewal. 

3. Procurement and Insurance 

Overall, procurement can assist organisations greatly when it comes to insurance. Not just through improving costs, but ensuring coverage is correct, as well as ensuring your broker is working for you. In today’s competitive landscape, a well-rounded insurance strategy is essential, and procurement can help you achieve optimum value. 

If you have an upcoming insurance renewal and would like some assistance, feel free to reach out to any of the 7 Step Solutions team for advice. 

Article by Charlie Wheeler-Jones - Consultant - 7 Step Solutions