HCL IBS Ltd. part of HCL Technologies Ltd. (HCL), a leading global IT services provider, has been awarded a major service contract by Equitable Life Assurance Society (Equitable Life).
The contract, which starts in March 2011, will deliver substantial cost benefits to Equitable Life’s policyholders through the transfer of core processing and support activities required to run its closed book of business.
The decision comes after a rigorous and extensive selection process by Equitable Life, which examined tenders from a number of leading companies. HCL will be providing an end to end solution including policy administration, finance, actuarial services, IT operational support and call center services Transformation and migration will begin immediately and HCL will take over the core processes from HBOS in March 2011.
The transfer will place over half a million policies under administration with HCL IBS. Service levels for policy holders will be retained, complying with the FSA’s Treating Customers Fairly (TCF) regime, and the costs of regulatory change will be absorbed by HCL IBS.
Equitable Life expects to make cost savings of approximately £8 million in the first full year of the contract and significantly improve cost certainty for the whole of the run off of its closed book of business. Future savings and predictability of costs means Equitable Life can reduce its provision for future costs by an amount in excess of £100 million.
Equitable Life is a UK life office with over £8 billion under management on behalf of more than 500,000 policyholders and members of group pension schemes. Founded in 1762, Equitable Life has been closed to new business since 2000.
Mon, Nov 23, 2009
Business