Resolution has confirmed its decision to appoint Capita to take over the customer service and administration of its life and protection businesses, in a deal worth £580m over 12 years.
The deal will see Capita take over the administration for Scottish Provident; the former Scottish Mutual and former Abbey National Life businesses and the Britannic and Alba life funds which have been merged into Phoenix Life, while IT services to Resolution will also be provided by Capita.
Although Scottish Provident International will continue to manage new and existing policyholders directly from its offices in the Isle of Man and Hong Kong, while the Scottish Mutual International closed book will be serviced directly by Resolution staff based in Dublin.
Around 2,000 staff from across the resolution group will transfer to Capita in August, and although resolution says some redundancies will be “unavoidable”, Capita is confident a significant proportion of staff can be redeployed within UK operations.
However, the company admits it plans to 'offshore' a number of these 2,000 posts to India over the next three years, including customer service processing and some IT services, although it says customer voice contact work and the storage of customer data will stay in the UK, while it intends for the Glasgow offices to become a key business centre for Capita.
But despite these changes, Resolution says there will be no changes to the benefits or features of policies, and funds will continue to be managed in the same way, while communication channels – including contact details for Abbey for Intermediaries – will remain the same.
It says the deal follows the completion of the initial phases of development resulting from Resolution’s £4m investment into e-commerce improvements for Scottish Provident, and is the result of a comprehensive review which forms part of the firm’s commitment to continually improve its customer service.
Mike Biggs, group chief executive, says: “This contract will enable us to provide the best possible services to Scottish Provident intermediaries and policyholders while remaining competitive in the market.”
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