Overview ​

A leading global (re)insurance company, recognized for its innovative approach to risk and capital management, needed to convert one of its existing legal entities into a services entity as part of a broader restructuring program. This project involved transitioning supplier contracts to the new services entity while ensuring compliance with regulatory guidelines, particularly those concerning Material Outsourcers.​

With significant capacity demands and aggressive timelines, the company sought support from Procurato to manage this transition. The aim was to ensure that all contracts were compliant, appropriately structured, and transitioned according to the company’s outsourcing policies.​

Objectives​

To meet the client’s strategic restructuring goals, we aimed to:​
• Transition and consolidate existing supplier contracts into the new services entity.​
• Ensure compliance with regulatory requirements, particularly for Material Outsourcers.​
• Conduct a thorough review of contracts to confirm correct licensing and alignment with the new legal structure.​
• Capture all relevant contractual terms (e.g., change control, restructuring, divestment clauses) in the company’s supplier database.​
• Support commercial and contractual review opportunities during the transition.​
• Maintain alignment with the project’s deadlines to ensure smooth project delivery.​

Key Activities​

• Conducted a comprehensive review of contracts, focusing on Key Suppliers to ensure compliance and proper alignment with the new entity.​
• Classified contracts by risk and priority, directing actions based on this categorization to ensure regulatory and contractual alignment.​
• Collaborated closely with the company’s Service Delivery Manager to guide the transition, providing Procurato's templates, management reports, and materials to streamline the process.​
• Engaged with suppliers to ensure their compliance with contractual obligations and provided support for negotiations, although the company handled the majority of the direct negotiations.​
• Tracked progress rigorously through detailed reporting, focusing on high-risk contracts to ensure timely delivery within the project’s deadlines.​

Benefits Achieved​

Working closely with the client’s Service Delivery and Procurement teams, we:​
• Achieved full compliance across all Key Supplier contracts, ensuring alignment with the company’s legal and regulatory requirements.​
• Completed the transition within the three-month deadline, meeting the restructuring program’s timeline.​
• Managed supplier Novation and Amendment Agreements where required, mitigating compliance risks through thorough due diligence.​
• Minimized disruptions to supplier services during the transition, maintaining business continuity.​
• Enhanced the contract database, centralizing information to improve supplier oversight and management.​
• Identified savings opportunities, drawing on Procurato’s benchmarking insights and experience.​