For life and pensions administration
AXA Sun Life has selected the Capita Group as its strategic outsourcing partner to administer 3.2 million mature life and pensions policies. The contract is anticipated to be worth approximately GBP500 million over 15 years.
Under the proposals Capita would provide customer servicing, policy administration, claims activity and related IT support to a proportion of AXA Sun Life’s business — with AXA continuing to administer business it currently markets actively through intermediaries.
Subject to a collective consultation process, approximately 1,300 AXA staff working in the UK, in Basingstoke, Bristol and Coventry, would transfer to Capita under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE). AXA would retain some of its own operations and staff, in those locations.
As a key element of the deal, Capita would acquire business and assets from AXA in India, involving the transfer of around 600 staff. Although TUPE does not apply in India, these employees would transfer in the spirit of the legislation, ensuring protection of their existing terms and conditions.
Paul Pindar, CEO of the Capita, said: AXA has stressed the importance of our track record in effective customer service in selecting Capita as preferred bidder, while cost savings are also an important aspect. We look forward to fine tuning the partnership with AXA over the next few months and welcoming all staff who join Capita.