Direct labour model can work for all

Insurers increasingly look to their supply chain partners to take more ownership of the processes involved to save time and money. As insurers align their procurement and supply chain management they are increasingly aware that the more hand-offs there are in a claim, complaints and costs increase exponentially. Relationships with suppliers offering a direct labour model can demonstrate a number of advantages including cost control.

At Auger, we strongly believe that the direct labour model and claim ‘ownership’ not only add efficiencies in the process but also offer two pillars of great customer service. Our engineers are all employed directly by us, working to our own schedules, liaising through an account manager at headquarters while keeping the customer updated. To ensure they are delivering a consistent service, they are trained in the same way at the Auger Academy in all technical matters. They report back to head office in the same way and the customer will receive updates on their job verbally from their account manager, and written reports later that day in most cases. This means we can offer the same levels of service from anywhere in the UK in all drainage and water mains claims.

As insurers look to their supply chain to take over more processes and move toward total integration with the supplier handling everything from FNOL to cash settlements, the number of companies with the technology and expertise will decrease. Smaller insurers without the resource to manage individual category suppliers have to make use of supply chains managed by tier one loss adjusters and claims handling companies; and of course there is a cost attached to this.

Using a structured, well-organised direct supply chain model has advantages for all concerned from the insurer to the supplier and, ultimately, to the customer in a virtual cycle. Chris Cowen, Client Relationship Manager, Auger