Under terms of the AT&T contract, which is reported to be worth $42m, AT&T will design and manage Fireman’s Fund’s Internet Protocol virtual private network to provide access to data on premiums, claims, insurance quotes and other customer information.

It will also implement its Internet Protect, which offers a warning system for potential security breaches, and AT&T BusinessDirect, a customer support and network management web portal. In a separate, $157m seven-year contract, IBM will automate key IT functions using its Universal Management Infrastructure.