CPP pays out £2.5m to exit IT platform contract with insurance software firm
CREDIT card, mobile phone, legal and identity insurer CPP has agreed a settlement of £2.5m to sever ties with insurance software provider SSP.
York-based CPP announced in September that it wants to develop its own IT platform, a move which will cost CPP around £6.5m in addition to the cash payment to SSP.
The firm said the changes were part of a redesign of its operating structure to become more cost effective and flexible.
The company said: “CPP recently completed an in-depth review of its current IT arrangements and likely needs over the coming years. The change in product and service focus drives a change in the group’s IT requirements.”
In August, SSP suffered a power outage at its Solihull datacentre, which knocked its cloud services offline for two weeks, leaving insurance brokers around the UK unable to trade.
However, Rupert Bidwell, head insurer for Europe at SSP, told Computer Weekly that CPP’s decision to ditch its technology was unrelated to its recent service troubles.
He said: “CPP’s decision not to complete the implementation of a new IT platform working with SSP was the result of CPP’s changing business strategy and product focus. SSP has been working constructively with CPP to support this change of direction. We would also like to reiterate that the decision was in no way influenced by the incident at our Solihull data centre on 26th August.”
