At a glance
- Contractual risk migitation and full review
- Negotiation planning and lead
- Cost savings
Exari Software for Insurance PoliciesClient:
Chubb Insurance SE is a member of the Chubb Group of Insurance Companies with 10,000+ people in 120 offices in 26 countries. In 2012, they were voted number one for Overall Service, Claims Handling (Speed & Fairness of Settlement) and Quality of Cover in the Insurance Times Personal Lines Broker Service Survey and the Post Magazine Annual Business Insurers Insight Report.Scope:
Chubb engaged Turnstone to commercially lead on negotiations for Exari Intelligent Contract Management software licensing to enhance their document management systems for insurance policies, provide consistency and reduce process costs and legal review.
The project objectives included:
- Full review of the proposed contractual proposition
- Understanding potential contractual risk areas
- Developing a negotiation strategy and taking the lead in the handling of the negotiations
- Gain a flexible commercial proposal with minimal risk exposure
- Keep pricing competitive for full term of the contractKey Business Benefits:
- Contractual risk mitigation
- Phased implementation of licenses
- Fixed costs for future and additional licenses over a 5 year period
- Set costs for support
- Ability to reduce licenses over future yearsThe Turnstone Approach:
Chubb had a requirement for a Contract Management Solution to improve efficiency and reduce process costs for the management of their insurance policies.
They had reviewed the market and selected the Exari software product as being best fit for their purposes.
Initial contact had been made with Exari and an initial proposal - commercial and contractual - had been received.
A full review of the proposed Exari contract document was carried out using the Turnstone Contract Review process which identified 19 "red" and 35 "amber" issues that represented potential risk to Chubb.
Turnstone developed a negotiation strategy with the client and took the lead in these meetings.
The contractual issues identified were successfully negotiated and relevant changes made to the final documents which resulted in mitigation of commercial risk for Chubb. These were carried out in conjunction with the commercial negotiations which included future license and support costs to negate price creep.
"We were delighted with Turnstone's careful approach to this critical supplier.
Firstly, their 'Contract MOT' revealed the meaningful risk areas in the contract. More importantly, the subsequent negotiation plan initiated a successful renegotiation with the supplier.
Out of this we achieved several important improvements, which helped to secure our position and gain clarity on the cost".
Chris Brown - European Chief Information Officer