Overview ​

A global professional services firm sought to enhance the management and cost-effectiveness of their insurance programs, with particular attention to high-expense areas.​

Procurato conducted a comprehensive analysis of the insurance category for the organization, focusing on achieving better visibility and performance across divisions. With multimillion-dollar insurance expenditures concentrated among the top 10 suppliers, key challenges included:​

• Fragmented data that limited category-level insights.​
• A lack of granular data on subcategories, complicating the identification of misaligned spending.​
• Market conditions driving a 35% increase in cyber insurance costs.​

The engagement prioritized centralizing and optimizing insurance coverage to improve cost efficiency, reduce risk exposure, and strengthen supplier performance.​

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Objectives​

• Improve visibility into insurance spending to uncover potential savings and optimize policy coverage.​
• Address data fragmentation and enhance supplier performance management.​
• Consolidate policies under a global agreement to capture out-of-scope spend and unlock more competitive pricing.​
• Evaluate premium increases, particularly for cyber insurance, to manage costs proactively.


Key Activities​

• Conducted a supplier spend analysis, revealing that 80% of total insurance spend was concentrated with three suppliers.​
• Mapped insurance expenditures by region, identifying high-spend areas in the US (42% of total spend) and EMEA (32%).​
• Developed a roadmap for detailed data mapping and subcategory analysis to support improved policy renewal decision-making.​
• Benchmarked policy coverage limits and renewal dates, recommending strategic adjustments to reduce premiums where feasible (e.g., refining D&O and E&O/Cyber coverage limits).​

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Benefits Achieved​

• Identified opportunities to optimize premium costs by adjusting policy limits, achieving:​
• A 40% reduction in D&O policy limits, resulting in significant annual savings.​
• Substantial reductions in E&O/Cyber premiums through strategic policy adjustments.​
• Provided a clear, detailed premium renewal summary, enabling more informed financial planning.​
• Delivered an actionable plan for improved data alignment and supplier performance, establishing a foundation for long-term cost efficiency.