Vendor Rationalisation
-
The client, a global reinsurance company, faced significant cost increases across its panel of lawyers and legal representatives. As a reinsurer, they relied on legal firms to manage complex claims, handle disputes, provide expert advice on regulatory compliance, and represent their interests in litigation. Over time, through acquiring portfolios of insurance claims, the company found itself working with 225 legal firms, spending over €10M annually with limited control over these costs.
The extensive use of multiple law firms led to significant operational inefficiencies. The large number of firms resulted in inconsistent service delivery, difficulties in coordinating efforts across various parties, and a lack of transparent cost reporting. This fragmented approach not only created service delivery challenges but also contributed to rising expenses. As a result, the client sought to rationalise its legal panel to improve service quality and reduce legal costs.
-
Key activities included:
Workshops and Interviews: Engaged key stakeholders to fully understand their operations and identify areas to rationalise costs
Data Analysis: Conducted a detailed analysis of available data to develop tailored cost-reduction strategies, such as shifting from hourly payment contracts to fixed fees and reducing the number of legal firms used
Legal Rationalisation: Developed a series of approaches to reduce costs and improve service across key European markets, focusing on selecting the right firms to work with and renegotiation strategies
Process Improvement: Created standardised processes for onboarding new claims portfolios and legal firms, ensuring consistent reporting that provides better visibility into legal spend for the client
Pilot and Testing: Developed a step-by-step action plan for each cost-reduction opportunity, determining which initiatives could be delivered internally and which required external support
-
A conservative estimate of over €1M in annual savings across current legal claims portfolios, alongside streamlined future operations:
Reduced Administration: A more efficient firm management process led to a significant reduction in the time spent managing third-party legal firms
Standardised Delivery: Implemented standardised cost reporting, enabling more accurate cost estimations for both current and future portfolios
Scalable Growth: The improvements made during the project positioned the client to take on more claims each year without needing to expand the operations team
-
Through stakeholder engagement, data analysis, legal rationalisation, and process improvements, Exevion delivered an estimated €1M in annual savings, enhanced service levels, reduced administrative burdens, and established scalable, standardised processes to support future growth and operational efficiency.
