German Insurances Neglect Cost Reduction Potential

Düsseldorf/Hamburg, August 7, 2012 – Despite sustained fierce competition and low levels of premiums, German insurances do not utilize their potential for cost reductions. Yet, clever purchasing management could save them hundreds of millions especially with external claims expenditures. To be able to realize these potentials in the future, an exclusive cooperation has been agreed upon between the purchasing consultancy Kerkhoff Consulting and the specialist for insurance consulting 67rockwell.

"External claims expenditures make up about 60 percent of the costs of a composite insurer", says Tim Braasch, Managing Partner of 67rockwell. "About one third thereof can be actively influenced by purchasing. Altogether five to ten percent of this amount can be saved, according to our experience." Costs for claims expenditures are incurred in many cases with service providers for the remedy of damage – for example, workshops for the repair of vehicles or service providers repairing technical equipment and devices.

In the future, 67rockwell and Kerkhoff Consulting will jointly work on this subject. "In Germany, the consultants around Tim Braasch are the most competent team in insurance consulting", says Gerd Kerkhoff, Managing Partner of Kerkhoff Consulting. "Kerkhoff Consulting is considered the quality leader of purchasing consultancies. When we combine these two expertises, there will be extensive cost reduction possibilities for German insurances."

Basis for cost reductions will be, in a first step, the complete transparency of all cost parameters. The online tool "Spendcube" by Kerkhoff Consulting will be used for it. Connected to the appropriate merchandise information system, "Spendcube" is able to structure costs and retrieve them in real time. "Spendcube shows quickly where insurances spend too much money", says Kerkhoff. "As a result, our consultants will use precisely these levers. The system should also serve as an early warning system after a joint project with us and 67rockwell."

About 67rockwell:

For years, 67rockwell Consulting has provided support and consulting for companies of the German insurance industry. Founded in the spring of 2008 with the specialization of consulting for life and non-life insurances, 67rockwell today has first-class references within German insurance companies.

The 67rockwell consultancy is a well-coordinated team of specialists from the insurance industry; their consulting projects are characterized by a strong orientation towards clients and implementations. Corporate headquarters of 67rockwell are in Hamburg. As of August 1, 2012, another location was established in Cologne – one of the most important insurance locations in Germany. 

The 67rockwell academy has network connections with relevant universities of the insurance industry in Hannover, Leipzig and St. Gallen. In cooperation with HSBA and the Hamburg Chamber of Commerce, it offers the MBA study program "General Management Insurance".

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