By Andy McCue, 24 November 2003 17:15
NEWS Capita has won a £110m business process outsourcing deal for the administration of the life and pensions book of Prudential.
As part of the 10-year contract Capita will provide services for new and existing policies at Prudential's Dublin-based cross-border life assurance business as well as the policies of one of its customers, St James' Place.
Around 260 staff will transfer to Capita, which is purchasing Prudential's Dublin-based services company, Prudential European Management Services, for an undisclosed amount.
The deal is significant in that it is the first to cover new policies rather than a 'closed book', which covers just existing policies and where revenues naturally decline over the course of the contract as those policies finish.
Rod Aldridge, executive chairman of Capita, said in a statement: "The contract is unique, being the first significant outsourced life and pensions arrangement to administer open book schemes. For both Prudential International and St Jamess Place International we will be processing new business alongside existing business, expanding the administration operation rather than managing closed books in run off."
Tola Sargeant, analyst at Ovum Holway, said the deal could trigger a number of similar 'open book' BPO arrangements.
"Having tested the outsourcing water through closed-book deals - and enjoyed the cost benefits - it seems insurance companies are now prepared to trust outsourcers with their new customers and were expecting more and more of them to move to open-book deals. All good news for life and pensions BPO players like Capita, Marlborough Stirling and Unisys," she said.
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below