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Procurement Market Intelligence Report

Disability Insurance
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Disability Insurance?

What is the average price of Disability Insurance?

This procurement report includes pricing information to help you purchase Disability Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Disability Insurance been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Disability Insurance yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Disability Insurance?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Disability Insurance with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

The top four suppliers of disability insurance collectively earn an estimated 41.0% of total market revenue, indicating a medium level of market share concentration. Medium market concentration suggests the market's top suppliers have advantages over their competitors but are not completely dominant. Overall, higher levels of market share concentration hurt... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?


How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Peer Reviews

Have you had any major complaints from customers in the past?

How have you dealt with past complaints?

How many clients are returning clients?

How do you improve client satisfaction?

Fee Structure

How do you arrive at the policy premiums you charge clients?

Do you charge any additional fees to clients?

Where do you maintain offices? How are these overhead costs distributed among clients?

How do you determine the risk of a policy holder?

How has or how do you expect the spread of COVID-19 to impact premiums?

What policies have you enacted to aid people affected by COVID-19?

Employee Turnover

What qualifications do you look for when hiring new employees?

How do you retain qualified employees?

Do you anticipate staff turnover will affect my insurance policy?

How does your firm mitigate the risks of employee turnover?

Insurer Qualifications

How many policies do you manage?

How do your services compare with those of your competitors?

How long has your company been operating in the disability insurance market?

What is the average size of a policy you manage? Have you previously managed policies for groups of my company's size?

Financial Stability

What external factors threaten your company's financial stability the most?

How will the establishment of possible increases in reserve requirements affect your company's profit?

Has your company ever depleted its available cash reserves for fulfilling claims? Is your company at risk of this happening in the future?

How is your company responding to increases in disability claims because of the aging population?

Claims Fulfillment

What is the process for submitting a claim?

How long on average does it take your company to pay claims?

Will you provide monthly reports detailing new claims and enrollees?

What process is there for disputing the results of a claim?

How did your claim turnaround and accuracy performance for the past 12 months compare with the standards you have set for your company?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should state their budget for the contract on an annual basis.

Buyers should state their payment expectations, including how they would like to pay and at what frequency they would like to make payments.

Selection Criteria

Buyers should consider the vendor's technical proposal, giving preference to vendors that meet all the requirements stated in the RFP and who's methodology matches the buyer's vision.

Buyers should consider the proposed cost of the contract from each vendor.

Buyers should consider the experience and qualifications of each vendor, looking at their experience that is most relevant to the proposed contract.

Buyers should review the claim process, giving favor to vendors that have an easy and painless claim process that is fair.

Project Schedule

Buyers should provide a timeline that pertains to the RFP process, stating the final dates to submit questions and proposals.

Buyers should provide key milestone dates that will follow the conclusion of the RFP process, such as the beginning of the contract period, the date of which re-negotiation can begin if applicable and the termination date of the contract.

Evaluate major factors to mitigate risk

How risky is the supply chain?

The supply chain for disability insurance has a moderate degree of risk, which largely stems from the investments that disability insurance providers make. Insurance companies invest a percentage of the premiums paid by customers to earn higher revenue and generate profit margins. However, investments are risky. Specifically, portfolio managers and... Subscribe to learn more.