Strategy is key for insurance procurement specialists in changing landscape

It’s no secret: Insurance companies are risk-averse and slow to change.

The multi-trillion-dollar industry didn’t mature into the titan it is today by trend-hopping and chasing a quick buck. Insurers move methodically. Their choices are aimed at stability and long-term profitability.

Procurement professionals working for insurance companies may share a similar mindset. But as technology evolves and new options emerge, Tiffany Jensen, Head of Financial Services at HAQM Business, believes that new doesn’t have to mean risky.

When implemented intentionally, embracing new procurement strategies can lead to cost-effective changes.

Hurdles faced by insurance procurement professionals

Proper planning is key regardless of who insurance procurement pros work with.

When insurance companies work with a new procurement solution, Jensen said they often haven’t thought through implementation or developed launch and communication plans. They may not have a partner who is committed to collaboration. And because of the way insurers operate, they need sophisticated partners with robust customer support to help them integrate with their existing systems and customize launch and implementation plans.

HAQM Business found in its 2024 State of Procurement Report that a “significant number” of organizations recognize the necessity to digitally transform and are already taking advantage of advanced procurement technologies.

Still, room for improvement was noted. Only half of surveyed organizations reported using digital invoices in 2023, but 98% of decision-makers said they were interested in discovering or learning about new digital tools that could scale up their procurement operations.

In the 2023 Deloitte Global Chief Procurement Officer (CPO) Survey, Deloitte reported that a strategy is critical, “but core digitization and digital transformation are ultimately measured by execution—which is still a work in progress.”

Deloitte shared that many chief procurement officers they speak with “either cite confusion and paralysis about where and how to get started, or worse still, they have tried and failed to yield the benefits of the promised land that digitization offers.”

Case Study: OneDigital

OneDigital, an insurance, financial services and HR platform, realized positive effects by deepening its digital connections. After doing a cost analysis with HAQM Business, OneDigital determined it could save approximately $60,000 annually by switching suppliers.

“Since adoption of HAQM Business, this move has proven to be a cost-effective change for our organization as well as notable increases in procurement efficiency by making it a one stop shop for most if not all of our office needs,” said Scott Weiss, OneDigital’s Director of Operations.

Scott said that the ease of the transition to HAQM “was a seamless one,” from “setting up the national account to creating invoice billing, our team members found it extremely easy to utilize the checkout process and found that invoice billing allowed them to cut down on a lot of work by not having to submit expense reports and track receipts.”

With some of the most advanced technology and widest selection available, HAQM Business can meet insurance companies where they are and grow with them.

“If you’re just starting out on your procurement journey and you want to streamline, we can make a big impact in your visibility and cost management,” Jensen said. “If you’re an enterprise organization and want to improve on what you have, we will meet you there and add value.”