Accenture says the acquisition will give it a life-insurance platform with processing functionality covering front-office sales to back-office policy administration. Accenture will maintain and enhance NaviSys’ existing services and leverage its software to develop new business process outsourcing (BPO) services for US life insurers.
The new BPO services will be designed to help insurers end their dependence on legacy systems, reduce their cost structures, increase operating efficiencies, and refocus their efforts on designing and delivering new products.
According to research firm NelsonHall, the market demand for outsourced business processes, such as policy administration and claims processing, and third-party administration services in the North American life insurance industry is expected to triple in size by 2010, to $2.17 billion.
The multitude of legacy core business systems in use at most carriers today is one of the most costly and problematic operational issues facing the North American life insurance industry, said David Hollander, senior executive in Accenture’s Insurance practice. By acquiring NaviSys, we can help insurers overcome this problem with comprehensive solutions that enable them to reduce their cost structures, increase efficiency, and accelerate new product introductions.
