Strengthening Partnerships in the Insurance Sector
Phoenix Group has announced a significant strategic alliance with Wipro, forming a new business process outsourcing (BPO) agreement. This collaboration comes after a comprehensive review of Phoenix’s IT strategy and its long-term operational goals.
Under this arrangement, Wipro will take charge of life and pension administration services for the ReAssure business, alongside the management of the ALPHA platform. This partnership, valued at £500 million (approximately US$645 million), is set to last for the next decade.
Focus on Operational Excellence and Customer Experience
The agreement is aimed at propelling the ReAssure transformation initiative by streamlining operations and reallocating resources to key strategic areas. Wipro has pledged to invest in the ALPHA platform and related services, ensuring they resonate with Phoenix’s customer experience aspirations.
This partnership with Wipro is designed to work in tandem with Phoenix’s ongoing association with TCS Diligenta. Phoenix Group emphasizes that TCS Diligenta remains a vital strategic ally, continuing to enhance new business capabilities. The company’s long-term platform strategy envisions over eight million existing policies being managed on TCS’s BaNCS platform.
Phoenix Group CEO, Andy Briggs (pictured above), highlighted that collaborating with Wipro will eliminate the necessity to migrate ReAssure customers or incur expenses related to platform replacement.
Current Market Dynamics in the UK’s Life and Pensions Sector
The partnership emerges amidst significant shifts within the UK’s life and pensions industry. According to IBISWorld, the industry’s revenue is projected to be £37.0 billion for the 2024-2025 period, despite experiencing a compound annual decline of 3.6% over the preceding five years.
Conversely, data from GlobalData indicates that the gross written premium for the UK’s life insurance market reached £216.3 billion ($267.2 billion) in 2023, with forecasts suggesting a compound annual growth rate of over 2% from 2024 to 2028.
- The pension risk transfer market is showing robust growth entering 2024.
- Fitch Ratings noted that the UK life insurance sector is the only one in Europe with a positive outlook for 2024, driven by solid, profitable growth in pension risk transfers.
News
