) announced that it has won a 10-year outsourcing deal from the
ace French general insurer, Generali. The French arm of
yesteryear global insurer Generali Group is Europe's largest life
insurance group and second largest general insurer. Financial
details of the deal were not disclosed.
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Under the terms of the deal, Accenture will be handling
Generali's existing life insurance policies (roughly 100,000
accounts). The idea of outsourcing its operations to Accenture
was mainly to reduce the insurer's operating costs.
With rich exposure to the insurance sector, Accenture is set to
manage the new responsibility with its Life Insurance Platform.
The platform has been designed with some software solutions for
the life insurance and annuity carriers, which help them to
integrate policy administration operations, develop new policy
ideas according to demand and lower operating costs. According to
company sources, 40 life insurance companies are already working
on the platform.
Leveraging Accenture's insurance outsourcing services, Generali
will be able to focus more on the other insurance products as
well as retain its life insurance customer base. With this
business win, Accenture seems to be quite confident about its
market share growth in France as it believes that the investments
made in the region to boost demand for insurance products have
started paying off.
A survey made by the outsourcing and consulting services provider
reveals a trend among the leading insurers to outsource certain
operations to streamline and simplify their businesses. Generali
exemplifies this trend. The indication is quite simple that
Accenture is going to witness a boost in its outsourcing
business. Notably, Accenture witnessed 10.0% year-over-year
growth in its Outsourcing segment.
Accenture has been winning deals continually from the insurance
sector. Though this is encouraging, we believe similar product
offerings from the likes of
Computer Sciences Corp.
International Business Machines Inc.
) are concerns.
Currently, Accenture has a Zacks #3 Rank, (Hold). Computer
Sciences has a Zacks #1 Rank, (Strong Buy) and IBM has a Zacks #3