5th Mar 2007 07:04
Innovation Group PLC05 March 2007 5 March 2007 THE INNOVATION GROUP PLC New appointments strengthen Board The Innovation Group ("the Group", LSE: TIG), which provides outsourcingservices and software solutions to the world's insurance providers, is pleasedto announce the appointment of Professor Dr. Kurt J. Lauk and Mr James Morley asNon-Executive Directors. Dr. Lauk, aged 60, has considerable global experience in both the automotive andtechnology industries. He is the Founder and President of Globe Capital Partnersand a special adviser to Silver Lake Partners. Dr. Lauk was a member of the Board of Management of Daimler-Chrysler AG, wherehe was responsible for its global Commercial Vehicle Division. Dr. Lauk was alsoChief Financial Officer of Veba AG (today called E.ON AG), the German energycompany. He was Vice Chairman and Chief Financial Officer of Audi AG, where hewas also in charge of marketing for the Audi brand. Dr. Lauk is a Non-Executive Director of Corus Group, the steel manufacturer,where he sits on the Audit and Nomination Committees. He is also a member of theboard of Business Objects, the business intelligence software Company. Mr Morley, aged 58, has significant financial and operational experience in theinsurance industry, the Group's core market. Mr Morley is Chief Operating Officer of Primary Insurance Group. He haspreviously held the role of Group Finance Director at Cox Insurance Holdings andGuardian Royal Exchange, as well as the paper group Arjo Wiggins Appleton. Hewas also Deputy Chief Executive and Group Finance Director of Avis Europe, thecar hire group. Since 1994, Mr Morley has been a Non-Executive Director of Bankers InvestmentTrust, where he is Chairman of the Audit committee. He is also a Non-ExecutiveDirector and Chairman of the Audit Committee of WS Atkins plc, the design andengineering consultancy. In line with best governance practice for larger public companies, Geoff Squire,the Chairman of the Board, will resign from both the Audit Committee and theRemuneration Committee. James Morley will join the Audit Committee and Kurt Laukwill join the Remuneration Committee in his place. The full committee roster is now: Audit: Chris Banks (Chairman), James Morley, David Thorpe Remuneration: David Thorpe (Chairman), Kurt Lauk, James Morley Nomination: Geoff Squire (Chairman), Chris Banks, Kurt Lauk. Geoff Squire, Chairman of The Innovation Group, commented: "We are delighted that Directors of the calibre of James Morley and Kurt Laukare joining the Board. James' extensive experience of the insurance industry - our key commercialmarket - will provide invaluable insights for our product and businessdevelopment. Kurt brings a global business perspective and an international reputation gainedat the highest levels of the automotive industry." There is no other information to be disclosed in respect of James Morley andKurt Lauk pursuant to paragraph 9.6.13 of the Listing Rules. Enquiries: Innovation Group PLC Hassan Sadiq, Group Chief Executive 01489 898 300 College Hill Sara Musgrave/Carl Franklin/Ben Way 0207 457 2020 Notes to editors: The Innovation Group provides outsourcing services and software solutions toinsurers and other risk carriers through its international network of offices.The Group has assembled a portfolio of important assets comprising a set ofsoftware-led business processes for the handling of the breadth of theadministrative processes of insurers and risk carriers, including ''backoffice'' functions such as claims management and sales. The Group's assets alsoinclude software technology for both policy and claims administration that canbe both utilised in connection with the Group's outsourcing operations andimplemented on a stand-alone basis. The Group provides its services on a''non-branded'' basis and does not perform underwriting functions. The Group operates in two principal areas of activity, outsourcing and software,serving insurers and other risk carriers. Since January 2003, The Group hasshifted its focus from software development and licensing to software-enabledoutsourcing. Whilst software continues to be sold independently of outsourcingoperations, it also has an important role in enabling the Group's outsourcingactivities. The most significant expansion of the Group's outsourcing operations has been inSouth Africa where it is currently providing its broadest range of outsourcingsolutions. It has also developed outsourcing solutions in the United Kingdom,Germany and Australia. Following the acquisition of FNS, the Group plans tointroduce outsourcing services in North America. The Group also generatesrevenue from its software operations in each of the four regions it serves:Europe, South Africa, North America and Asia Pacific. The Group has offices in the United Kingdom, Continental Europe, South Africa,Japan, Australia and North America, employing over 1400 people (1,650 peopleincluding FNS). It delivers services for some of the largest insurancebusinesses in the world, including Aviva, Auto Club of Southern California, FordMotor Company of South Africa, Toyota (South Africa), Halifax General Insurance,The Insurance Australia Group, Jaguar Drive Plan (South Africa), AXA Insurance,Sonpo 24 Insurance (Japan) and Zurich (UK). Key market facts: • BPO Market to grow to $110 billion (£57.9 billion) in North America by 2009. The growth of the BPO market continues to outpace other IT services. In North America, BPO will grow by an 8.8 % compound annual growth rate by 2009. (Gartner 2005) • Due to the high systems maintenance costs of mature insurance organisations, only 30% of IT budgets are available for developing new systems and technologies to improve business support. (Gartner, 2005) • Two of the top five priorities of these insurers are regulatory compliance and cost containment. (Forrester Research, 2005) • 79% of insurers polled are planning to or are currently executing system consolidation in the next 12 months to address critical issues. (Forrester Research, 2005) • Of those planning system consolidation, 55% are planning to address policy systems; 48% are expected to address claims systems. (Forrester Research, 2005) • Claims system replacement is more prevalent in the US P&C insurance industry. Research shows that 35% of insurers are assessing this approach versus 22% of insurers that are simply renovating their existing system. This trend is being fuelled by the advancement in the vendor market and need to deploy solutions rapidly. (Gartner, 2005) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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