Unisys has signed a US$450 million, 10-year deal to provide top to bottom business process outsourcing services for the life insurance and pension segment of London-based Royal & SunAlliance Insurance (R&SA).
Unisys said it would outsource the processing and administration of life insurance and pension policies of the insurance company's UK Life operations. Last August, the insurer closed its life and pension businesses to new customers to allow it to focus on its core general casualty insurance businesses.
The Unisys contract would move all operations for the life and pension businesses to Unisys to service and maintain existing customers, an R&SA spokesman, Paul Atkinson, said.
For Unisys, the deal will include about 1700 workers from R&SA who will become Unisys employees on May 1. Customer service and call center operations will also covered under the agreement.
Unisys will do the work through its Unisys Insurance Services (UISL) subsidiary that provides managed insurance administration services.
Atkinson said the contract would allow R&SA to continue to serve existing customers while it moved away from the life and pension segments of its business.
"This is just one part of our business, not our whole business," he said. "This really is a cost-effective way to do that."
For Unisys, the R&SA business process outsourcing deal is the latest in a recent string of similar deals in the financial services and insurance markets around the world. Those deals include a mortgage processing agreement with RAMS Home Loans in Australia, a check processing deal with Malaysia's Maybank and an agreement to create the first 100 per cent image-based check processing program for Washington Mutual, the seventh largest financial institution in the US.
Unisys already provides insurance business processing outsourcing services for other companies, including Abbey Life.
"Unisys has an excellent track record of providing managed services worldwide that deliver tangible business results to our clients and their customers," managing director at UISL, Peter Thomas, said. "We are delighted to have R&SA UK Life become a client of UISL, where we will now manage more than four million policies for the life and pensions market in the UK."
A Unisys spokeswoman said the business process outsourcing business would be a key part of the company's future because it's a growing market segment.
In 2001, R&SA signed an information systems outsourcing deal with IBM for its main insurance operations, Atkinson said.