Five IT projects, worth a combined R400 million, should be completed by the end of next year and create a more efficient and paperless environment for short-term insurer Mutual & Federal (M&F), says MD Keith Kennedy.
The projects are a single workflow system being developed and installed by business process consultancy Ovations, a business intelligence system by SAS, a single insurance system, a reinsurance system and a human resources system based on an Oracle database. The last three projects are being developed by M&F itself.
Kennedy says the IT projects are part of what the company has called its "Grand Plan", whereby the use of technology would enable it to streamline its workflow systems. It would also enable it to change its federated business model to one based on a number of "hubs" where certain administration functions will be conducted.
Once the projects are in full use, the company will be able to centralise its sales administration in Johannesburg, Durban and Cape Town. Its claims administration process will be done in those cities as well as Bloemfontein and Port Elizabeth.
"Currently, sales and claims administration are handled by each of our 50 branch offices themselves," Kennedy says. "However, the use of technology, such as scanning, faxing and the telephone, means that we can centralise these functions and make the process more efficient."
The restructuring of the work processes will result in about 600 people losing their jobs, reducing the total number to about 2 800 staff.
Kennedy says M&F plans to minimise the impact of technology on those affected by freezing hiring, allowing natural attrition to play out and finally introducing retrenchment packages.
M&F is a subsidiary of insurance group Old Mutual and because of that, it gets some infrastructure development and support through the deal the parent signed with T-Systems last year.
"That is the only outsourcing part of our plans, otherwise the rest we do ourselves," Kennedy says.
Related stories:
T-Systems snares R1.8bn Old Mutual deal
Old Mutual deal imminent
Old Mutual downscales IT contract
Old Mutual updates its Web data protection solution
Share