HCL IBS Ltd. part of HCL Technologies Ltd. (HCL), a leading global IT services provider, has been awarded a major service contract by Equitable Life Assurance Society (Equitable Life). The contract, which starts in March 2011, will deliver substantial cost benefits to Equitable Life’s policyholders through the transfer of core processing and support activities required to run its closed book of business.
The decision comes after a rigorous and extensive selection process by Equitable Life, which examined tenders from a number of leading companies. HCL will be providing an end to end solution including policy administration, finance, actuarial services, IT operational support and call center services.
Commenting on HCL IBS’s appointment, Chris Wiscarson, Chief Executive of Equitable Life said: "This is one of the most important decisions in the Society’s history. HCL has an impressive reputation and I am confident that they will provide great service and great value to policyholders. I want to help restore policyholders’ savings and this is an important step in that direction."
Commenting on the win, Stuart Drew, Senior Vice President at HCL Technologies, said: "This is a major win for HCL IBS since the acquisition of Liberata Financial Services in 2008 and reflects our position as a leader in transforming our clients’ Life and Pensions operations. However, this deal is more than just Life and Pensions policy administration. Our expertise enables us to provide a ‘virtual life office’ approach to Equitable Life, which is a true differentiator for HCL. We look forward to welcoming the Lloyds Banking Group staff who work on the Equitable Life account to HCL as well as a small number of Equitable Life’s own staff. Over the coming years, we plan to develop the scope of their work to encompass other financial services clients. Ultimately we aim to transform the Aylesbury operation into a centre of excellence within our global service delivery capabilities."
Transformation and migration will begin immediately and HCL will take over the core processes from HBOS in March 2011. Equitable Life expects to make cost savings of approximately £8 million in the first full year of the contract and significantly improve cost certainty for the whole of the run off of its closed book of business. Future savings and predictability of costs means Equitable Life can reduce its provision for future costs by an amount in excess of £100 million.
Stuart Drew added: "HCL’s governance model means that strategic needs are given as much focus as operational delivery. At HCL we are committed to building long-term mutually beneficial relationships as well as delivering continuous improvements to the services we offer. We have developed a growing onshore/offshore business model which will enable further capability developments and efficiency improvements. Our platform has the capability to deliver cost certainty and to provide those benefits on long term contracts. We are keen to grow our Life and Pensions business, in both the open and closed book space, and this announcement demonstrates we provide a compelling and competitive proposition in this market."
The transfer will place over half a million policies under administration with HCL IBS. Service levels for policy holders will be retained, complying with the FSA’s Treating Customers Fairly (TCF) regime, and the costs of regulatory change will be absorbed by HCL IBS.
Combined charges HCL receives over the lifetime of the contract together with the charges associated with the actual
