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Procurement Transformation - Financial Services

Case Example:
Category Procurement Transformation - Financial Services


Financial Services


Merger between AVIVA (was Norwich Union) and CGU (formerly General Accident and Commercial Union).


Loss adjusters are firms of professional "honest brokers" contracted by insurers to act between the insurance company and policy holders to manage the settlement of the high value claims which are therefore beyond the normal scope of insurance companies' first-line call-centres. The client also employed almost sixty loss adjusters which it considered to be "non-core" and wished to outsource.

Canary Wharf

Savings Delivered:

Projected Phase 1 and Phase 2 savings were independently validated by the client's Finance team.

Building 1     Building 2     Building 3

Background to Financial Services Interim Purchasing / Procurement Management Transformation Assignment

Following the merger of Norwich Union and CGU a formally managed (Prince 2) purchasing synergies programme was launched to deliver procurement synergies of £ 100m across all Claims categories on the merged Claims spend of £ 2,000 m. One of the key elements in this delivery programme was the purchasing of nationwide commercial and household Loss Adjuster services.


  • Director of Claims Purchasing

Category Purchasing Interim Management Role

  • Category Purchasing Manager: Commercial & Household Loss Adjusters

Key Activities as Interim Category Purchasing Manager

  • Developed long-list of firms of loss adjusters with a mix of capabilities
  • Used team-based approach to review and compare capabilities of long-listed loss adjuster firms
  • Developed an understanding of the loss adjusting industry's view of how supplier relationships had been managed historically by the insurance companies
  • Developed consensus for short-list in intensive timescale
  • Organised team to audit the capabilities of short-listed loss adjusters (Capability Analysis) from the inside, to compare presented capabilities with actual "on the ground" performance
  • Organised workshops with leading loss adjuster firms to develop a Supplier Relationship Management (SRM) scorecard - an objective means of comparing claims management performance across all loss adjusters - an industry first
  • Worked with loss adjuster firms to develop programmes of initiatives to deliver savings target
  • Selected final panel of loss adjusters from audited short-list
  • Introduced independent and objective performance measurement system to track savings
  • Working with Contract Manager supported the drafting of contracts for loss adjuster firms
  • Negotiated fees and contracts with selected loss adjuster panel
  • Wrote business case justifying saving
  • Obtained independent approval from Finance for saving
  • Positively supported the induction of the new permanent Head of Loss Adjuster Purchasing

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