It depends on the type of vendor. There are some types of vendors where there is a large number of competitors and their product or service has been commoditized. When a vendor is competing on price, usually there is not a partnership that is built between the insurer and the vendor.
There are other vendors that spend a great deal of time understanding the insurers' business and work as a subject matter expert with the insurer. These vendors are typically are involved with systems or business consulting. These vendors would not be successful working with their clients unless they showed an expertise in the product or service they provide. These vendors typically compete on value of their product and service, along with having an intimate knowledge of the business and can deliver a unique value to the insurer.
