When an insurer begins to investigate the insource / outsource question this often means they are reacting to a situation. That could be the need to reduce costs or maybe a market event has happened. Maybe there has been a change of leadership and a strategic review is required. Or, as we are currently hearing maybe it’s difficult to access experienced claims managers who could be moving to other sectors for better pay following the path of the Great Resignation.
The first step is to analyse what the current strategy is and whether that set up reflects the requirements needed – maybe the strategy needs to change. Are you looking to address any of the challenges above or maybe you’re looking to bring in more high net worth business or more delegated business and need the skilled expertise to do that? Maybe you’re looking to improve your digital capabilities and using outsourced solution could help test that.
There are many variables at play which relate directly to an insurer’s strategy and the pros and cons are interesting:
As you can see, there is no one-size fits all solution but there is always a solution!
Related reading
The pros and cons this article outlines are a useful frame for the decision, but arriving at the right answer for a specific organisation requires a clear-eyed view of where the current procurement function actually stands: its capability, maturity, structure, and whether the existing operating model is fit for the demands being placed on it. Without that baseline, the insource/outsource question risks being answered on instinct rather than evidence. Our procurement maturity assessment service sets out how a structured diagnostic works in practice, covering the fifteen elements that determine procurement effectiveness and how benchmarking against industry peers can clarify where the gaps are before any structural decision is made.
How Procurato can help
For organisations that have worked through the decision and concluded that outsourcing some or all of their procurement activity is the right answer, the practical question becomes how to make that model work without losing oversight or consistency. Our Procurement Outsourcing service is designed precisely for that transition: we agree the scope, embed our team within your systems and processes, and operate as an extension of your function rather than a separate entity. Whether the requirement is a buying desk, strategic sourcing support, or end-to-end programme delivery, the engagement is sized and structured to fit your organisation. If you are still weighing the options and want an independent view on what the right model looks like for your situation, we are happy to have that conversation first.
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