Norwich Union has signed a major outsourcing contract which will see the administration of almost three million life and pensions policies in the future handled by reinsurer Swiss Re.
It means the management of 220 product-related technology systems – acquired in part as a result of NU’s various mergers and takeovers in recent years – can now be decommissioned to improve its admin handling and so the company can concentrate on customer service.
In a statement just issued by the firm, Norwich Union Life says there will be no change to the company’s terms and conditions, or to clients’ premiums and benefits but will mean NUL can focus on managing customers, their policies and funds.
NU has in the past received serious criticism from financial advisers and customers about the quality of its administration handling – more specifically in 2005 when the firm was forced to write to advisers about the quality of its admin - in part because of the huge number of legacy systems the firm has to manage and integrate.
The firm argues it has made “significant progress” to improve servicing levels to counter this criticism and says its “innovative agreement” will allow it to further improve customer service as well as reduce the costs and complexities of its legacy systems.
The actual policy migration work to Swiss Re’s Alpha system will now take place over the next two years, and not all of its legacy systems are being decommissioned as 330 product systems will continue to be operable at NU.
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