Aviva-owned UK general insurer Norwich Union has entered into an agreement to outsource the administration of almost three million of its existing life and pension policies to Swiss Re.
As part of the agreement, Norwich Union will continue to actively manage the customers, their policies and their funds, while Swiss Re undertakes the responsibility for administration. No changes will be made to the customers’ terms and conditions, the premiums they pay or the benefits they receive.
The administration of the policies will be migrated across to Swiss Re’s IT platform, enabling Norwich Union to decommission 220 of its 550 product systems. Around 1,000 employees who currently administer these policies at locations in Norwich and Stevenage will be transferred to Swiss Re.
This is a major strategic development for Norwich Union, said Mark Hodges, chief executive of Norwich Union Life. We have set out a clear plan to materially reduce the complexity of our life and pensions operations. This innovative agreement will enable us to improve customer satisfaction levels further and make us a much more efficient organization. Our distribution, product and brand strength coupled with a leaner organization will help deliver future growth.
The administration and employee transfer to Swiss Re will occur in October 2007, with the migration of policies scheduled to be completed in early 2009.