Claims Vendor Strategy

In most P&C carriers, third-party vendors -- appraisers, IA firms, repair networks, medical managers, legal counsel -- touch a majority of claim dollars. Yet vendor management is often treated as a procurement function rather than a strategic one.

The carriers with the best vendor performance are those who have invested in performance measurement systems that go beyond cost per unit. They measure vendor quality: accuracy of damage assessments, customer satisfaction scores on handled claims, cycle time contribution, and litigation escalation rates by vendor.

Meaningful vendor scorecards change behavior. When vendors know their performance data flows directly into capacity allocation decisions, their engagement with quality improvement is notably higher.

The relationship side matters too. The best vendor partnerships are ones where the carrier and vendor have shared visibility into performance data and regular problem-solving conversations, not just contract reviews.