Co-op insurance picks IBM

THE Co-operative’s Group has agreed a multi-million pound technology outsourcing deal for its insurance business with IT services company IBM.

The Manchester-based mutual said its subsidiary, CIS General Insurance, had signed a £55m deal with IBM for it to build an integrated insurance platform and maintain it for 10 years.

IBM’s platform will comprise all insurance business functionality including:n ew business processing; claims handing; policy servicing;  interfacing to third parties, and hosting services.

However desktop, network and telephony services which will continue to be sourced from within The Co-operative Group.

Mark Summerfield, chief executive of Co-operative Insurance said: “This strategic relationship with IBM will enhance our ability to meet the needs of our customers efficiently, effectively and innovatively.

“The capabilities delivered by the new IT platform, will allow us to increase the number of Co-operative customers and members we serve, both through competitive propositions and through the development of strong distribution and insurer partnerships. In particular, the enhancements to our digital and data analytics capabilities will see us forge a sustainable and innovative position in the market.”

The Co-operative said IBM had been picked after a “detailed evaluation process” and will be implemented over the next three years.