) announced last week that its insurance suite will be deployed by
Pennsylvania-based insurance carrier, Mutual Benefit Group.
Financial terms of the deal were kept confidential.
Per the contract, Accenture will offer its Accenture Claim
Components solution to Mutual Benefit Group to replace the latter's
legacy system for processing clients' claims.
The insurance carrier serves comprehensive commercial and
personal insurance coverage to 90,000 beneficiaries and has been
rated A- (which means Excellent) by the rating agency A.M. Best. To
maintain its leading position, as well as service goodwill, the
company is leveraging Accenture's claims management solution. The
solution will enable the carrier to settle Property and Casualty
claims as and when a loss is incurred.
Apart from this, last week Accenture received two contracts from
U.K. government agencies. The U.K.'s Department of Health extended
an ongoing contract. Under the one-year extended contract,
Accenture will provide Picture Archiving and Communications Systems
(PACS) solution to the Department's National Health Service (NHS)
trust. The PACS solution will enable the trust to digitally
capture, store and share medical images, replacing the old method
of manually handling such medical data.
In another development, Accenture and Serco Group plc (which is
a British government services company) will jointly work on
transforming the U.K. Ministry of Defence's service delivery
Though the financial impact of these deals is not yet known, we
believe that they carry long-term benefits. Accenture has a strong
demand for its insurance solutions. Association with Mutual Benefit
Group will create opportunities for similar deals in future. On the
other hand, the tech giant is receiving a number of government
deals, which indicates a rebound in government spending.
Though Accenture's deal prospects look bright, the huge number
of government deals (which carries low margin), stiff competition
) and significant European exposure may temper its growth going
Currently, Accenture has a short-term Hold rating, denoted by
the Zacks #3 Rank.
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