RBS Insurance (RBSI) has signed a £40 million contract to outsource its subsidence claims work to software solutions provider Innovation Group.
Under the new three-and-a-half year contract, the Innovation Group will handle all of RBSI’s new subsidence claims and the completion of around 70 percent of existing subsidence claims.
It will provide RBSI with a fixed per-claim pricing structure, backed with reinsurance, with its back-end processing running on the software provider’s Insure Claims 7.0 platform.
“Our offering in the UK subsidence market is sophisticated and particularly attractive to insurers as it provides them with certainty over claims costs,” said Andy Roberts, CEO of the Innovation Group.
Between 25 and 30 staff from RBSI will also be transferred to the Innovation Group under TUPE.
According to an analyst at TechMarketView, the Business Process-as-a-service contract is the type of deal it forecast would be occurring in the market this year.
“This is exactly the kind of BPS contract we pointed to in our BusinessProcessViews report Business Process Services: Market Trends & Forecasts 2011 that enables the client to have an outcome-based contract – in this case RBSI gets certainty over its claims reserves and indemnity spend,” said John O’Brien.
The contract begins immediately and ends 31 December 2014.