Insurance Procurement
The recent trend for Procurement specialists to become more involved in the broker selection process (and to a lesser extent in other aspects of the insurance buying process) at large companies has been stimulating much debate within the insurance community.Procurement (or purchasing and supply) specialists have come to be associated with a cost-cutting ‘transactional approach’ which could result in insufficient attention being paid to long-term relationships and to overall value. But, although there are potential long-term dangers, this first-ever investigation into the area reveals that Procurement expertise and methodology can clearly make a positive contribution, if integrated correctly.
This report explores the opportunities and challenges associated with that transition and, more importantly, points towards a better integrated and more effective broker selection process for the future. JLT approached AIRMIC to collaborate on the investigation, on the basis of their established track record of researching important topics that affect members (a strategy made possible by their partner programme: www.airmic.com/partners.asp). Grist, an independent publishing services company, were then brought in to carry out the research programme.
Insurance Procurement
