Healthy Savings Made from Danger Zones
A UK FTSE 250 world leading provider of mobile power solutions with a staff of 6000 who deliver solutions to clients in over 100 countries.
Within weeks of being appointed, Odesma had undertaken significant analysis of the procurement operation and third party spend data. This identified a number of areas where significant savings could be made.
Over recent years, the organisation had seen its’ Global Medical Insurance premiums rising by around 10% year on year. They’re not an easy bunch to insure – with their people located throughout the world, in often dangerous or difficult locations, for example Pakistan, Afghanistan, Iraq and Zimbabwe – which is now on the UN embargoed list. These locations mean that there aren’t too many insurers in the market that could deliver across all the territories and at the same time, be able to deliver all of the benefits that the organisation dictated. Particularly as this insurance needs to cover their employees, their families and their visitors’ medical evacuation if so required.
To identify the needs of the stakeholders and identify the insurance opportunities in the market in order to negotiate to best possible deal
Consulting with HR, Benefits, Procurement, the Senior Leadership Team in Dubai and Operations teams within the organisation, the Odesma team mapped out the geographical spread of their staff, together with a corresponding table of required benefits. These benefits often changed dependent upon the location, making it a complex requirement for a single insurer to price…but there was still a feeling that a single supplier would be desirable.
Census data for each of the individuals being insured was gathered, together with their claim histories to date.
However, before going to the market, and under NDA, Odesma undertook significant research and discussions within the market to understand who might be able to deliver within the 8-9 territories and with the level of benefits required by the organisation. Four suppliers were identified and invited to tender through Odesma’s preferred e-sourcing tool.
A global US based insurer, with a base in the Middle East has been selected as a result of the e-tendering exercise. The preferred supplier and the organisation will commence with them in January 2017.
As a direct result of the Odesma research, process and e-tendering solution, the year on year increase in premium has been arrested and a $700,000 saving has been made on the current premium (16%), whilst maintaining the same level of cover and benefits to the organisation and its’ employees.
View More Projects