Insurance Networking News

INSURERS CALL FOR AN

Evolving
VALUE PROPOSITION

By Craig Weber Insurance Practice Lead, Celent

Thinking about your choice of preferred vendors, which factor has the strongest influence?

(FIGURE 1)

PRIMARY DRIVERS OF PREFERRED VENDOR STATUS (%)

This year’s crop of VIP
winners have blended style
and substance to meet the
changing technology demands
of their client base, and
create successful business
partnerships in the process.

How do the following factors impact
your choice of preferred vendors?
(FIGURE 2)
THE OVERALL VENDOR EQUATION (%)

The overall value equation (the business value we get for the money we pay)

The product they offer (funtionality, fit, and performance)

43

36%

36

21

The people behind their product (their attitude, philosophy,

and knowledge)

Carriers and their software and services vendors both face a daunting set of challenges. The insurance industry is in a constant state of (hopefully) productive upheaval. The pressures on project efficiency and costs ratchet up each year. Technology is helping raise the bar on carrier flexibility and performance. But delivering on the promise of technology requires consistent and disciplined teamwork between carriers and vendors.

That’s why a discussion of vendor performance is critical. Achieving “favorite vendor” status is not a goal unto itself, but rather is a sign that carrier and vendor needs have been aligned. The concept of favorites implies that not all vendors are created equal, and that carriers recognize differences in vendor performance.