TCS Doubling Down Insurance Platform Places
Bengaluru, India- November 20, 2019: Tata Consultancy Services is intensifying down on its insurance stand which has by this time acquired more than $5 billion in business during the past two years and is considering at a newer markets in Continental Europe to develop.
Tata Consultancy Services Limited (TCS) is an Indian multinational information technology service and consulting company headquartered in Mumbai, Maharashtra, India. It is a subsidiary of Tata Group and operates in 149 locations across 46 countries.
The Indian IT services leader's jumbo insurance wins first came in the UK market, through its Diligenta unit, which primarily absorbed on managing closed-book business pools in which no fresh insurance policies are issued. Managing a closed book naturally means the agreement will end after all the policies run out, though that can take years. TCS is now focusing on the open-book
business, so that new policies constantly replenish old ones and the number of policies being managed continues to grow.
Meanwhile IT services Tata Consultancy Services (TCS) announced an expansion of its long-term partnership with Phoenix Group, Europe’s largest life and pension consolidator, to drive the growth and transformation of the Standard Life business and meet the future needs of its customers, workplace clients, and their advisers. "Currently, we have about 4 million open active policies; now with this deal (expanded Phoenix Group project) we will take it up to over 7.5 million policies. So, we are changing the nature of our business, we are changing the way we go to market," Suresh Muthuswami, President of TCS' BFSI Platforms business, said media. TCS manages over 40 million policies all over the world. In addition to the UK and US, Muthuswami said TCS was also concentrating at newer markets to enlarge and to manage new types of insurance policies.
Though the company did not reveal the deal financially or duration except that it is a long term multi-year deal, it is projected to be in the range of $2 billion in line with the Transamerica deal announced last year, according to industry sources. TCS will also develop its presence in Scotland throughout this deal, with an operations service hub in Edinburgh. The long drawn out partnership will result in the digital transformation of Standard Life’s pensions and savings operations onto the TCS BFSI Digital Platform, powered by TCS BaNCS. This will expand the total scope by a further 4.2 million policies, taking the total number of policies managed by Diligenta, TCS’ controlled subsidiary in the UK, on behalf of Phoenix Group, to nearly 10 million.
“We believe a partnership model is absolutely the right approach. It enables us to work with a leading global organisation with great expertise and to respond to the dynamic environment that we’re operating in. Working in partnership with TCS will support our growth strategy in the workplace market and bring benefits to workplace clients and scheme members,” said Susan McInnes, CEO of Standard Life.