AXA Life is in discussions with Capita Group plc ("Capita") to outsource a section of its policy administration in a move it says will improve service to customers and intermediaries.
Under the proposals, Capita would administer and service all customer and intermediary requirements in connection with approximately 3.2m traditional life and pension policies not actively marketed today and are held on older IT systems.
The move will allow AXA to focus its investment on providing quality service to its wealth management, protection and corporate benefits businesses while Capita provides dedicated investment and service to the traditional business.
The proposals for the traditional business are designed to deliver significant improvements in customer service from process simplification, improved customer communication solutions and improvements in IT support.
The proposed agreement should deliver annual net savings to AXA of around £30m in the medium term.
AXA Life chief executive, Paul Evans says customers will benefit from Capita's expertise and the investment the company makes to deliver service improvements.
"We have carried out over a year of extensive analysis of the options available to provide the best levels of service to our customers. Capita is the market leader in the life and pension outsourcing market, and has a proven track record of excellent service and IT delivery," he says.
"I am confident that this proposed partnership will provide real benefits for customers and intermediaries using our traditional business while offering better opportunities for our employees as the scale of the portfolio in our traditional business declines over the coming years."IFAonline
Cautious, Balanced & Dynamic Growth
Cowardly, boring or sensible
Latest news and analysis
‘Most significant’ upgrade since launch
Changes happening over coming months