Aon signs £230m insurance BPO deal

The world's second-largest insurance and risk broker, Aon, has signed a £230m business process outsourcing (BPO) deal with Xchanging for its UK claims processing.

The 10-year contract will see Xchanging manage Aon's client operations division, which handles current and legacy insurance claims administrations and processing as well as accounting and settlement for clients of Aon's reinsurance and wholesale units.

Aon already offshores some of its UK claims processing through Cambridge Solutions, which will be retained as part of the Xchanging deal.

More than 500 Aon employees based at sites in Romford, Leicester and Glasgow will also transfer across to Xchanging.

Aon is aiming to create an integrated electronic claims processing platform that can also be sold to rival brokers on the London insurance market and across the wider insurance industry.

David Mead, group operations director at Aon, said that as well as delivering cost savings the deal will allow the insurance broker to focus more closely around "client needs and core areas of expertise".