Insurance Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

When analyzing rate benchmarking of insurance services, location plays an important role, as regulations related to insurance change depending on the locality. For instance, in the U.S., healthcare spending is higher as compared to spending in Switzerland. In 2022, the U.S., spent around USD 12,555 per person on healthcare. On the other hand, Switzerland stood in second position spending around USD 8,049 in healthcare costs. With the rising healthcare issues in Switzerland, people are focusing on covering the risk through insurance. This is anticipated to drive the demand for the category.

According to IBEF, Life insurance firms in India collected 18% more premiums in 2023 as compared to the previous year. Private insurers in the country face tough competition in providing different services in life as well as non-life insurance.

According to Insurance Business 2023 report, the Philippines saw a rise in reinsurance rate by 50% due to natural calamities because of climate change. However, due to low labor costs, the Philippines is the best-sourcing country for the category, due to low premium rates.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the software engineer at AXA Insurance Company receives a 4% - 5% higher base salary compared to the salary received by the software engineer working in companies such as Allianz, and Manulife. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the insurance services category over the last two years:

In August 2023, NH Nonghyup Life Insurance signed an agreement to partner with iCOOP Co Ltd., with an aim to offer innovative digital health management services. Considering their alliance, NH Nonghyup Life Insurance and iCOOP will work together closely, aiming to create inventive business models and strategies.

In August 2023, Hartly Insurance Services, LLC partnered with King Insurance Partners which is a full-service insurance brokerage firm. Hartly presents best-in-class insurance companies to B2B customers.

In November 2022, Chubb introduced a new feature in its integration platform Chubb Studio, which can integrate offerings from Chubb as well as 3^rd party insurance carriers into their digital ecosystems.