Norwich Union Life has signed an agreement to outsource the administration of almost 3m life and pension policies to Swiss Re.
The outsourcing contract is part of Norwich Union's move to rationalise its legacy systems and boost efficiency.
The UK insurer will start the decommissioning of 220 of its 550 product systems in October, when the shift of policy administration to Swiss Re begins.
The outsourcing deal will see 1,000 Norwich Union staff transferred to Swiss Re, but customers, policies and funds will still be managed by Norwich Union.
Last September Norwich Union announced moves to cut 4,000 jobs by the end of 2008 – a figure that includes 500 IT roles that will be outsourced to third party suppliers and 1,000 posts that will be moved to offshore centres in India.
The announcement marked a shift in the insurer’s offshore outsourcing policy, which had centred on application development and maintenance. The company is now open to offshoring systems architecture, strategy and design and IT management roles.
The UK insurer is expecting to pay redundancy costs of £250m to cover the job losses, but to recoup an equivalent amount from next year.
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