Novarica Checklist Helps Insurers Optimize New Vendor Relationships

Establishing a successful relationship with a new technology vendor involves much more than negotiating price and terms

Boston, MA (Jan. 21, 2020) – As innovation is driving more sophisticated, specialized data and technology solutions, a carrier’s ability to select the right solution for both tactical and long-term needs, and to position for change, has never been more important. Establishing Solution Provider Relationships: General Principles is the first of a series of reports produced by research and advisory firm Novarica to provide insurer CIOs and their teams a set of guidelines and principles on how to start third-party relationships on the right foot.

In outlining general principles, Chuck Ruzicka, Vice President of Research and Consulting and co-author of Novarica’s new report, emphasizes both communication and clearly defined roles as essential during and after the contracting process:

“While communication is always vital, sufficient dialogue during negotiations guarantees the right business needs are considered, the correct people are at the table, and the ideal solution is chosen. Approaching the right vendor with a unified business/IT front ensures contracting is a straightforward process.”

Click here for the table of contents or to access the report.

Report Summary

Including the right stakeholders, actively managing the selection process, and controlling contracting are key to establishing strong and productive relationships with technology solution providers. Carriers will need to focus on inter-departmental communication and work to present a united front.

This CIO Checklist provides a set of guidelines and principles that continue to apply to this critical area, even as innovation is driving more sophisticated, specialized data and technology solutions. These solutions are being offered in new ways and are changing faster than ever before. A carrier’s ability to select the right solution for both tactical and long-term needs, and to position for change, has never been more important.

The Checklist:

  • Get the right people involved early
  • Define team member roles and constraints up front
  • Consider the use of third parties when needed
  • Implement an effective RFI/RFP process before moving to the demo or POC phase
  • Differentiate and prioritize requirements
  • Publicize and evangelize the importance of an effective contracting strategy
  • Recognize unique aspects of contracts for different services
  • Maintain leverage and options throughout the negotiation process
  • Manage the resulting relationships; don’t be managed by them

Click here for the table of contents or to access the report.

About Novarica

Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.

Source: Novarica

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