Serco’s global BPO business today announced that it has signed a major 10-year contract with leading life assurance and pensions provider Aegon, valued at around £170million.
Serco had acquired Mumbai-based BPO player Intelenet last year in a deal worth £385 million.
The outsourcing partnership further strengthens Serco's business process outsourcing (BPO) interests within the UK financial services sector and will see the company provide customer contact and support services for Aegon following the TUPE transfer of some 330 members of staff at their offices in Lytham St Annes, Lancashire.
"This is another significant contract and an exciting strategic development for our growing global BPO business. It marks our entry into this important segment of the financial services. This new partnership will see us operate primarily from the company's existing offices in Lytham St Annes in the UK, which we are aiming to develop as a centre of excellence following earlier contract wins with the UK’s leading online retailer Shop Direct Group and leading UK general insurer, esure,” said Tom Riall, Chief Executive of Serco Global Services.
Serco will deliver a wide range of services for Aegon’s UK-based protection business. These include managing all aspects of the customer journey from initial underwriting through to claims management for the Aegon Individual Protection (AIP) suite, which comprises a full portfolio of life assurance, critical illness, disability and income protection products. Serco will look after all aspects of policy servicing and claims for some small ‘closed books’ of pension and life assurance policies that are no longer sold but still require ongoing management. It will also work closely with Aegon to deliver business process improvement and customer service excellence through the use of Serco’s advanced cloud technology, internet telephony (VoIP), CRM and call centre software. Serco will be responsible for the administration of approximately 500,000 current and closed book policies in total.
The initial ten-year term of the new partnership contract signed by Aegon and Serco will commence on 1 November 2012.