Importance of insurance procurement now recognised

An increasing number of international firms are taking action to ensure that their insurance spend is under control.

A 2009 study, Aon’s Global Risk Management Survey, which identified financial stability as the major priority when it came to insurance buying, was an early indicator that firms were starting to place a greater emphasis on insurance buying.

Now insurance buying appears to be taking on even greater emphasis.

"Where I'm seeing a lot more and hearing a lot more (on insurance buying) is in central Europe where traditionally they haven't gone down the supply chain route,” Stephen Wills, director group procurement, AXA said.

"Places like France and Germany, because of the financial crisis, are now giving it far greater consideration and want to learn from places like the UK," Wills said.

The benefits of a more centralised approach to insurance buying were outlined in a recent study by the Procurement Intelligence Unit.

A report published in 2010 found firms introducing a global insurance programme could reduce their spend on premiums by as much as 20% for any given product line when compared to the figures spent on a decentralised basis.

Wills readily admits insurance is 'a complex spend area', but the events of the past three years have ensured that it is now near the top of procurement's agenda.

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