Procurement

How maverick spend affect cost of claims and loss ratios

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This message is from the Motor & Non-Motor Claims Procurement Team, which oversees and manages suppliers handling non-motor claims for plumbing, building, loss adjusting, contents replacements, repairs, salvage, autobody repairers, assessors, glass and care hire.

We need to reinforce a critical operational requirement: The use of approved preferred service providers is mandatory.

All approved suppliers have been thoroughly vetted for quality assurance, cost efficiency, compliance, and service standards. The importance of using only those on the approved panel cannot be overstated.

When suppliers outside of this network are engaged, several risks arise:

Increased claims spend and lack of cost control – such suppliers do not comply with stipulated and agreed rates

No contractual protection in the event of complaints or defective workmanship

Non-compliance with internal procurement policies and claims governance

During the current financial year, a substantial spend has been outside of the approved supplier base. To protect our business and customers, we need to reduce this non-preferred spending. Your cooperation is essential to maintain service standards, control costs, and minimise operational risks.

The use of approved preferred service providers is mandatory

For access to the current approved supplier list please login to our Procurement Pages supplier directory. If you have questions regarding supplier usage, please contact the Claims Procurement Team at: