Author Archives: Greg Henkin- iXchange

Commercial Insurance Buyers Should “Trust, But Verify”

The slogan ”Trust, but verify” was made famous by former President Ronald Reagan during the Cold War. He used this expression to describe transparency in political relationships between nations. Today, this phrase is commonly used to describe the relationship between businesses and stakeholders. The commercial insurance buying process has a difficult time verifying trust in relationships with no concrete means to verify the results, especially as the process involves verbal discussions and negotiations. How do you trust your business partner … More

Disintermediation & The Insurance Intermediary

As consumers, we are all flooded with TV ads from GEICO, Progressive and other insurance companies that are providing insurance coverage direct to consumers. In fact, it seems the Gecko is TV’s most famous and recognizable celebrity today (at least he is to me). So, why do these companies sell their insurance products directly to the consumer instead of through insurance agents? The reasons are simple: Increased profit margin A direct relationship with the buyer The intermediary/agent provides little added … More

Commercial Insurance Actions: The Real “Sealed Bid”

Just like most of you, I live in a town that has to purchase various forms of commercial insurance. The goal is for the town to create a fair bidding process for qualified insurance brokers to bid based upon the specifications provided. To accomplish this, Municipalities and Governmental Agencies use what is known as a “Sealed Bid” process where the bidders submit a sealed envelope that no one can tamper with. We understand that this is a fairly common practice. … More

Companies Watching Their Commercial Insurance Bid Live Online

At long last, the ability to see inside the “black box” of commercial insurance purchasing has arrived! Like almost everything else, commercial insurance purchasing is going live online. Buyers are seeing the benefits of using technology to improve the cost and coverage terms for their companies. Sourcing technologies are enabling CFOs and other stakeholders to go to their ipad or mobile device and view the auctioning of their commercial insurance.  The benefits just keep piling up because they get all … More

Why Commercial Insurance Companies Should Utilize Reverse Auctions vs. RFPs

Commercial insurance companies are experiencing a lack of transparency, efficiencies and fairness in the traditional insurance buying process, which is resulting in increased costs.  In addition, buyers often form long-term relationships and do not engage in a process that yields the best financial results. Costs can spiral upward in some cases significantly above the actual pricing that is available to the buyer on equal or better coverage terms. Furthermore, there are no solid benchmarks for buyers of commercial insurance. The … More

Six Steps to Running Successful Reverse Auctions in the Insurance Space

Greg Henkin Managing, Partner iXchange, has more than 30 years of experience in the insurance industry. He has held senior management positions in several major insurance brokerages, owned his own brokerage and risk management consulting firms, and now owns and operates the iXchange. In his experience, reverse auctions in the insurance space are most successful when the sourcing event follows these six steps: Establish goals and parameters. Agree on the timing and date of the auction. In addition, you should … More

Reverse Auction Strategy Can Halve Insurance Costs

The use of reverse auctions has significantly reduced the costs of many commodities that corporations purchase. The “art” of spend management and Group Purchasing Organizations (GPO’s) using reverse auctions is becoming common among private equity firms. The principal focus of spend management is on goods and commodities. The successful application of reverse auctions to such corporate service “spend” categories as legal, accounting and insurance is relatively limited.  A few large corporations have experimented with the use of reverse auctions for … More