In South Africa’s short-term insurance sector, rising claims volumes, tighter timelines, and growing regulatory pressure are making operational efficiency critical. As insurers work to process claims faster and stay compliant, the role of third-party suppliers is becoming increasingly important. Yet, despite its direct impact on claims resolution, compliance, and customer experience, supplier management sometimes remains overlooked.
In this blog, we examine why supplier management is becoming a strategic priority, the limitations of legacy processes, and how digital platforms are driving faster, more transparent claims ecosystems.
Why Supplier Management is Critical in the Insurance Sector
The insurance sector relies heavily on third-party service providers, often across multiple categories, to deliver on claims resolution and meet customer expectations. These suppliers do more than provide services; they directly influence turnaround times, compliance, and the overall policyholder experience.
When supplier management relies on manual or fragmented systems, it can disrupt workflows, weaken compliance, and put brand trust at risk. Issues like inconsistent pricing, missed SLAs, and outdated documentation often lead to longer settlement times, audit scrutiny, and rising operational costs.
Recent industry data shows that over 30% of delays in short-term insurance claims can be traced back to supplier bottlenecks or outdated vendor records.
As a result, supplier management software is no longer optional; it’s a critical enabler of modern, governed insurance operations.
What is Supplier Management Software?
Strong governance isn’t a box-ticking exercise; it’s what keeps operations running smoothly when volumes spike or regulations shift. Supplier management software helps insurers stay ahead by embedding compliance checks directly into onboarding and engagement workflows. With automated alerts, audit trails, and real-time status tracking, it becomes easier to maintain control without slowing things down.
Key Challenges Faced by Insurers Without Digital Supplier Management Tools
Insurers that rely on spreadsheets, emails, or disconnected systems face a range of avoidable issues:
- Limited performance and SLA visibility
Without a unified system, insurers struggle to monitor supplier activity, track SLAs, and spot breaches or deviations in real time. This limits their ability to proactively manage vendor risk, resolve issues quickly, and ensure service quality across claims. - Inefficient onboarding processes
Manual onboarding, such as collecting documents or chasing approvals, creates administrative delays, reduces consistency, and increases the risk of errors or non-compliance. - Inadequate procurement control
Without standardised tools and workflows, procurement practices vary across teams, leading to inconsistent supplier engagement, limited oversight, and weakened adherence to internal and regulatory requirements.
These pain points not only waste time but also reduce the quality and speed of claims fulfilment, which ultimately impacts customer satisfaction and operational cost. Worse still, manual procurement processes expose insurers to regulatory and reputational risk.
Strategic Benefits of Implementing Supplier Management Software
Modern supplier management software delivers measurable value by automating critical processes and introducing greater control:
- Compliance tracking in real time: Stay audit-ready with expiry alerts, document versioning, and auto-reminders.
- Faster supplier onboarding: Vendors can upload documents, e-sign contracts, and complete steps in one place, cutting onboarding time by up to 80%.
- Management of spend direction: Drive procurement toward preferred suppliers with spend tracking and category control.
- Stronger SLA enforcement: Performance dashboards enable insurers to act quickly on delays or breaches.
- Support for transformation targets: Built-in B-BBEE data helps insurers meet and report on procurement transformation goals.
With the right tool, procurement becomes proactive, compliant, and strategically aligned.
How Supplier Management Software Strengthens the Claims Ecosystem
Supplier management doesn’t exist in a vacuum. When integrated with claims systems, it becomes a performance multiplier.
Insurers can link suppliers to specific claim types, geographies, or urgency levels, ensuring the right vendor is matched to the right case. Real-time data on turnaround times, SLA breaches, and customer satisfaction informs allocation decisions.
For example, when Hollard Insure implemented Codeplex Supplier, they transformed supplier management for over 30,000 vendors and began tracking operational performance automatically. By prioritising suppliers excelling across key performance criteria, Hollard was able to proactively address underperformance, reduce claim turnaround variability, and improve consistency across its vendor network.
Instead of relying on anecdotal feedback, claims managers now act on evidence, improving speed, service, and control.
Procurement Transparency and Governance: A Competitive Advantage
Strong procurement control is what separates reactive insurers from those that lead with confidence. Manual systems can’t offer the visibility or consistency needed to meet today’s compliance standards or tomorrow’s.
Supplier management software brings clarity and cohesion by:
- Structuring procurement approvals around consistent, audit-ready workflows
- Making vendor performance and risk profiles visible to all decision-makers
- Aligning procurement data with broader compliance and transformation targets
Choosing the Right Supplier Management Solution for Insurance Operations
Not all supplier platforms are created equal. When evaluating your options, look for:
- Built-in insurance compliance: Full support for tax, B-BBEE, licensing, and regulatory requirements.
- Seamless integration: Connects with your claims, finance, and policy platforms effortlessly.
- Local expertise and support: Choose a solution built specifically for South Africa’s insurance environment.
Off-the-shelf platforms might cover the basics, but they rarely align with the complex regulatory and operational demands of insurance. Tailored solutions help insurers move faster without cutting corners on compliance.
Conclusion: From Admin to Advantage
Insurers who digitise their supplier management are doing more than upgrading a system; they’re redefining a core business function. Procurement becomes smarter, faster, and more accountable.
From improved claims turnaround to tighter procurement control in insurance, the strategic value is clear. The right supplier management software doesn’t just reduce admin, it helps unlock a long-term competitive advantage.