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Unisys and Abbey Life Strike Major Outsourcing Deal for Insurance Administration Managed ServicesOutsourcing contract establishes Unisys as a leading provider of managed solutions for insurance sector in the UK
Blue Bell, Pa., January 18, 2001 – Unisys and Abbey Life today announced a major outsourcing contract in the United Kingdom under which Unisys will provide with Abbey Life with insurance administration managed services. Under the contract, estimated to be worth more than $300 million over the next 10 years, Unisys will support the processing and management of Abbey Life's 1.5 million life insurance policies.
Unisys will provide the services through a new, wholly owned subsidiary, Unisys Insurance Services Limited (UISL). Around 1,000 Abbey Life employees will transfer to the new subsidiary. UISL will offer its services to other insurance companies in the UK.
Building on the skills and industry knowledge of the Abbey Life staff, Unisys will conduct a major systems overhaul, replacing Abbey Life's older systems with the Unisys Life and Pensions Solution, which includes a life, pensions and investment administration system. Unisys will offer modern and efficient processing services, while ensuring that Abbey Life clients continue to receive good customer service.
Abbey Life, part of the Lloyds TSB Group, required an efficient and cost-effective solution that would manage its administration systems for the lifetime of its life assurance customers. Outsourcing the operation to Unisys was the answer.
The new venture enables life insurance companies to realize tangible benefits from outsourcing beyond simple cost reduction. UISL intends to improve efficiency by introducing world-class technologies, skills and processes.
David O'Brien, vice president and general manager for Unisys Global Outsourcing and a director of UISL, said, "UISL is there to administer all policies in force and to manage customer contact and fulfillment on behalf of Abbey Life, in a manner seamless to the consumer. UISL is the result of much research, listening to clients and market leaders, to better understand their future needs. Abbey Life executives were able to build their business case around a vision for improved service delivery and efficiency. It was this common ground that enabled this deal to be struck."
Alastair Taylor, Unisys vice president of Worldwide Financial Services, said, "We are committed to expanding our managed services to the insurance market. The opportunity to develop new administration services based on our relationship with Abbey Life gives us a flying start to realizing our ambition to be the market leader for managed insurance administration services."
Chris Evans, Abbey Life, added, "This agreement presents exciting new opportunities for many Abbey Life staff as part of a new business with ambitious plans for growth. By giving Abbey Life access to the latest, innovative technology, it will also ensure we can continue to provide the service that our clients require. I am delighted that Unisys can use the skills and commitment of many Abbey Life staff as the foundation for establishing this new enterprise."
The majority of Bournemouth-based staff will become Unisys employees and are expected to remain in the current Abbey Life premises. A core business team will remain with Abbey Life in order to carry out various financial and control functions.
This agreement follows the creation of a similar outsourcing venture, announced in December 2000, in which Unisys, Lloyds TSB and Barclays formed a new company called Intelligent Processing Solutions Limited (iPSL) to manage and run outsourced payment processing operations. See earlier news release.
The link with Lloyds Bank began in December 1988 when Abbey Life, together with five financial services subsidiaries of Lloyds Bank were linked to create Lloyds Abbey Life plc, with Lloyds Bank owning the majority of the shares (other companies within the Group were Black Horse Financial Services, Lloyds Bank Insurance Services, Ambassador Insurance, Lloyds Bowmaker and Black Horse Agencies).
1996 saw the merger of Lloyds Bank with TSB and in December that year the newly formed Lloyds TSB Group plc bought out the balance of the shares in Lloyds Abbey Life. Abbey Life then became a wholly owned subsidiary of the Lloyds TSB Group plc.
Hill Samuel Life Assurance Company became part of Abbey Life Assurance Company in January 1998, bringing with them Target Life who they acquired in July 1995.
Abbey Life's clients funds under management (in excess of £15 billion) are looked after by Scottish Widows Investment Partnership (SWIP), following the merger between Lloyds TSB and Scottish Widows in March 2000.
February 2000 saw the transfer of Abbey Life's sales force – to Allied Dunbar. Following this move, the company closed to new business. Abbey Life has over one and a half million clients still being serviced. About Unisys Unisys is a worldwide information technology services and solutions company. We provide consulting, systems integration, outsourcing and infrastructure services, combined with powerful enterprise server technology. We specialize in helping clients use information to create efficient, secure business operations that allow them to achieve their business goals. Our consultants and industry experts work with clients to understand their business challenges and create greater visibility into critical linkages throughout their operations. For more information, visit www.unisys.com.
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