• Corporate Insurance

    Have been tasked with reviewing the business spend on corporate insurance... it looks to be sat currently with a large handful of suppliers and they all appear to be doing "similar" things.

    What experiences do people have with this area? And what levels of influence do buyers actually have in this space?

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  • Answers (1)

  • Pamela Hoffman

    26/09/2017 08:59PM

    We aggregate all our insurance spend with one broker, who shops our policies for us annually and also acts as a risk consultant. Purchasing does not (and does not want to!) directly compete the insurance policies. We switched brokers this year as a result of an RFP.

    Our neighboring entity has a situation more like what you describe, they have several brokers each handling a different portion of their policies. It gets the job done as well, but some feel they may not be getting the best pricing since they don't aggregate their spend for both the brokers and the wholesalers. On the upside, their roster of brokers must compete against each other continuously, so they may be more on their toes. They arrived at this structure as the result of an RFP as well, but it was a number of years ago I believe.

    Our influence in selecting the broker is the same as with any other professional service, but we keep out of the actual insurance buys. It is a complex field and we have no expertise.

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    Freddie Andrews Thank you Pamela - this is really useful and reassures what my original thoughts were

    I really appreciate your input

    26/09/2017 09:03PM

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