Computer Sciences Corporation today announced that it has signed a 10-year business process outsourcing (BPO) agreement with Swiss Re Life & Health, the world`s largest life and health reinsurer. The relationship represents one of the largest BPO arrangements yet concluded in the global insurance market. CSC estimates the revenue value of the agreement to be approximately $700 million over the term of the agreement.
CSC currently delivers end-to-end insurance processing in the U.S. for approximately two million life and health insurance policies managed through Swiss Re Life & Health`s Admin ReSM line of business. Through its Admin Re programs, Swiss Re acquires closed blocks of life and health insurance business enabling primary companies to realize value, release capital, streamline processes and improve focus.
The new agreement extends and expands an outsourcing relationship between CSC and Swiss Re that began in 1995. Under the new contract, CSC will provide life and health insurance policy processing services for Swiss Re in the U.S. and the U.K.
"Working with CSC, Swiss Re has expanded its Admin Re growth strategy outside of the U.S., beginning with approximately 225,000 Zurich Life policies recently acquired in the UK," said W. Weldon Wilson, Chief Executive Officer of Swiss Re Life & Health America Inc. "Working together, the combination of Swiss Re`s risk and capital management capabilities and CSC`s administrative team, processes and technology gives us unmatched flexibility and capacity."
"CSC has become one of the world`s largest and most experienced insurance BPO providers by delivering tangible, transformational business results to our clients," said CSC`s Chairman and Chief Executive Officer Van B. Honeycutt. "CSC is aided in these endeavors by its ability to draw upon its global network of insurance BPO centers. These centers support more than 150 clients and employ 2,500 staff in the U.S., Mexico, the UK, France, South Africa and India."
"Since 1995, when CSC administered around 50,000 policies for Swiss Re Life & Health, we have helped the company acquire more than 40 blocks of insurance business", said Jim Cook, president of CSC`s Financial Services Group. "This new extension and expansion of our relationship opens the door to even more significant growth."
CSC`s insurance BPO services to Swiss Re Life & Health include customer service, claims processing, and audit and regulatory compliance support at mutually agreed and measured service levels. These insurance services are backed by global technology services, including application development and support; conversion services; help desk services; and network, server, desktop and mainframe computing.
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