Benefits and Challenges of Sourcing Strategies in the Insurance Industry
Different sourcing strategies have been introduced and are widely accepted in the insurance industry. They will continue to be adopted in the future as they allow for significant cost savings and improved process quality in core insurance and support processes. Furthermore, the appropriate implementation of sourcing strategies provides insurance companies with lower transaction costs and extended time for higher value activities. Project experiences and analyses show significant sourcing opportunities for insurance companies in the corporate functions but also along the core insurance value chain. However, benefits and challenges of sourcing strategies need to be recognized and managed carefully.
Published in I VW HSG Trendmonitor – 3, 2012