UK-based RBS Insurance (RBSI) has awarded a £40m contract to software solutions provider, Innovation Group to manage its newly notified subsidence claims.

Under the contract, Innovation Group will also manage the completion of approximately 70% of RBSI’s existing open subsidence claims.

RBSI will be provided with a fixed per-claim pricing structure, backed with reinsurance, that removes variability from the insurer’s claims reserves and delivers certainty over indemnity spend, according to Innovation Group.

Around 25 and 30 RBSI staff will also be transferred to the Innovation Group under TUPE.

The contract will commence with immediate effect and will run through 31 December 2014.

Innovation Group has over 800 global clients including AXA, RSA, American Modern Insurance Group, LeasePlan, The Ford Motor Company, Aviva, Toyota and Zurich.

The group processes more than 4 million claims each year with its 2,300 personnel located in the UK, Australia, Belgium, Canada, France, Germany, Japan, India, Pakistan, South Africa, Spain and US.