Overview of the Insurance Industry
The insurance industry plays a pivotal role in the functioning of the economy, owing to the amount of premium it collects, the scale of investments, and the economic role it plays in covering potential risks. Amid tightening regulations and low investment yields, renowned companies in the insurance industry are planning to redefine their business models to achieve sustainable growth and enhance their profit margins. The firms operating in the insurance industry are further planning to tackle the mounting pressures by focusing on developing new products, sales channels, and coverage areas. The growth of the insurance industry can be attributed to factors such as rising standards of living and increasing insurance coverage needs.
Although the insurance industry is witnessing promising growth, several factors may hinder the growth of the industry. They include:
- Disruptive technology: With the relentless growth in innovations, new technologies are disrupting the traditional broker model. It is estimated that smaller companies are more vulnerable to technology disruption and responding to the emerging changes effectively. Moreover, insurance companies are facing the need to include foundational shifts in their operating models and underlying architecture to ensure flexibility and agility in their process.
- Aging workforce: The average retirement age of the employees has increased; therefore, it becomes a challenge for the companies a large group of employees retires at once. To keep pace with the growing demand, insurance companies should increase their investment in talent acquisition to ensure stability in leadership, production, and client servicing.
- Regulations: Prominent companies in the insurance industry are facing the need to operate in the fluctuating regulatory jurisdictions and comply with these changing rules. Consequently, organizations are facing the need to improve their capital requirement and transparency of their existing process while keeping in line with the compliance requirements.
While companies in the insurance industry are working towards the attainment of their goals, it becomes necessary for the insurance companies to keep track of their resources to stay relevant and updated with the technologies. To understand the growth prospects and stay on par with the changing consumer behavior, insurance companies need to keep track of their expenses through a robust spend analysis solution.
The Business Challenge and the Journey
A prominent insurance company wanted to counter the challenge of inefficient management and gain better visibility into the business spend. The insurance company also wanted to manage their organizational spend and identify critical saving opportunities. With the help of spend analysis, the insurance firm wanted to gain accurate, consistent, and detailed visibility and identify the savings opportunities to accelerate decision making. The primary concern of the insurance company was to identify the potential bottlenecks in terms of savings leak and purchasing overlaps.
To achieve sustainability in the solution offered, the procurement experts at SpendEdge carried out interviews and discussions with prominent stakeholders in the insurance industry. Furthermore, to identify insightful ways to analyze business behavior for the insurance company, the experts further compiled information from sources such as trade shows, company presentations, and industry forums in the insurance industry.
SpendEdge’s spend analysis solution helped the insurance company understand the current industry trends and find sourcing opportunities in the market. The insurance company was able to understand the current state of spend and devise a short-term and medium-term strategy to improve savings. In addition, the spend analysis solution also helped the insurance company improve the process efficiency and enhance their overall business performance.
Fundamental questions answered in this spend analysis for the insurance company include:
The spend analysis solution offered by SpendEdge assisted the insurance company to understand the latest industry trends and offer complete visibility into the spend. The spend analysis solution also offered insightful ways to the insurance company to access, organize, and analyze spend data and ensure that the contract practices are on par with the industry standards.
To know more about our spend analysis solution