Strategic Sourcing for Health & Welfare Benefits Insurance: Effective Strategies
The Health and Welfare Benefits Insurance marketplace of providers is diverse. Most companies use benefit consultants or insurance brokers who play a critical role in the design, purchase and administration of a company’s benefit program. Because of the diverse and complex nature of the category and overall supply base, sourcing strategies in this category are most effective when Corcentric leads the broker selection process. By leading the suppler selection process, Corcentric can:
- Control the cost discussion including brokerage fees, commissions, and insurance premiums
- Align Health and Welfare Benefit sourcing strategies with our client’s financial goals
- Negotiate risk sharing arrangements with broker(s)
- Ensure financial targets are built into the broker agreements
Corcentric can also support the Human Resource function in its Supplier Management responsibilities. By supporting HR, Corcentric can effectively add value during the Benefits Vendor RFP process by ensuring that brokers follow sound sourcing practices when retaining insurers and other benefits providers and that the cost benefit analysis of insurance and benefits alternatives are based on metrics and goals important to our clients strategic and financial objectives.