In this our third article on the property claims challenges we’ll be focusing on the often tricky and complex area of supplier management. We cannot emphasise enough just how important it is to have the right suppliers working to the high standards you expect. But even if you’ve already done the leg work and got the right people in it’s still not always plain sailing.
Construction companies, painters, decorators, gardeners, and retailers are, like most other industries, struggling to source materials and products. From timber to semiconductor chips these shortages are having a huge impact. It’s not just availability, it’s the significantly inflated costs which are all passed back on to the insurer and ultimately the consumer.
Source : [Unsplash)
As our recent article on motor insurance alluded to the perfect storm; Brexit, the pandemic, product and material availability and costs are elongating the claims process. Costs are additionally being increased in high impact claims situations as consumers are being forced to stay in hotels or alternative accommodation for much longer.
Some insurers are choosing to cash out but if an insurer can’t find a builder how will the customer? Whilst it may seem like an initially good solution for both parties that is likely to diminish as consumers find themselves project managing their own repairs without the negotiating skills of a large insurer and the ripple effect will be that customer satisfaction will decrease. In this social media savvy world, just one tweet can damage a company’s reputation.
Add to this the challenge of ESG. The carbon footprint of a property claim can be huge. From the initial loss adjustment visit to the multitude of suppliers who walk through the door to get the job completed from an environmental perspective it is tough.
So, what should insurers be looking for when it comes to supplier management?
The customer journey: Ensuring that it’s integrated, easy to deal with, low touch and consistent.
Operational resilience: Ensuring the security of supply and future regulatory requirements.
Implementation of processes: Is it easy, is it time and resource effective?
Indemnity control: Is there a clear oversight of this and expense costs?
Digital journeys: What solutions do suppliers have that work with your systems – and vice versa.
And maybe most importantly – partnership: A supplier is an extension of an insurer. The consumer doesn’t differentiate, and neither should you.
It is important to acknowledge that supplier management is a two-way thing and it’s vital to be transparent about the goals required and the performance of that supplier.
We can’t promise that it is easy. But we can help.
The Procurato Way
At Procurato we know if can be difficult to set up a strong third-party network; and knowing where to set it up. Some insurers may not want overheads for their claims management and wish to outsource as a whole, some may need specialist expertise or maybe there is a performance or surge issue. And of course, creating a trusted supplier list can feel like an incredibly open-ended task.
We can help identify suppliers from loss adjustors to construction firms and from specialist stores to high street retailers with a wholesale arm. Providing targeted support, we can do everything from taking a line-by-line review of your existing supplier contracts to mediating conversations and challenging performance whilst also supporting when things are going well.
We can manage your challenges head on and hand back to you when you are ready.
If you’d like more information on how to create and manage your suppliers, please contact us.