1st Nov 2007 10:20
Innovation Group PLC01 November 2007 The Innovation Group plc Contract Win 1 November 2007 The Innovation Group plc ('Innovation Group') (LSE: TIG.L), which providesoutsourcing services and software solutions to the world's insurance providers,has signed a long-term agreement with Safe Auto Insurance Company ('Safe Auto')in the United States. The contract, which commences immediately, provides both software and claimsmanagement outsourcing services and is estimated to be worth USD$5 million overthe next 24 months, subject to volumes. Safe Auto selected Innovation Claims(TM)after an extensive market evaluation.Safe Auto required an adaptable, proven platform to automate and streamlineclaims processing today with the scalability to meet its needs into the future.It was equally important that the solution be quickly adaptable to keep pacewith the business and emerging best practices in claims management. Enquiries: The Innovation Group plc +44 (0) 1489 898300 Hassan Sadiq, Chief Executive OfficerPaul Hemsley, Group Finance Director College Hill +44 (0) 20 7457 2020 Sara Musgrave +44 (0) 20 7457 2049Ben Way +44 (0) 20 7457 2055 Notes to editors: The Innovation Group plc ("Innovation" or "Group") provides outsourcing servicesand software solutions to insurers and other risk carriers. The softwaresolutions are designed for the handling of policy and claims administrativeprocesses within the insurance industry. The solutions can be utilised inconnection with the Group's outsourcing operations or implemented on a standalone basis. Approximately 77% of the Innovation Group's total revenues are nowrecurring with the remainder coming from the sale and support of its softwaresolutions. The Group provides software and outsourcing services on a non-brandedbasis and does not perform insurance underwriting functions. The global BPO market is estimated to grow at 14% CAGR from 2007 to 2010according to IDC (May 2006) and outpace IT services. In North America, BPO isestimated to grow by an 8.8% compound annual growth rate to $100 billion by2009. Gartner 2005. Datamonitor, August 2006, has also said there has been a continued increase inthe propensity to outsource business processes in the insurance industry with47% of insurers using one or more BPO services in 2006 compared to 41% in 2005.Claims and policy administration BPO (Innovation's specialty) are the highestpriority business functions for BPO and among the fastest growing BPO areas. Innovation has over 220 global clients including the Ford Motor Company, Aviva,AXA Insurance, Royal & SunAlliance, Toyota (South Africa) and Zurich (UK). TheGroup processes more than 3 million claims per year with 20% direct claims costsaving achieved. The software operates in 8 languages and the Group hasapproximately 2000 people across offices in North America, the UK, Germany,South Africa, Australia and Japan. www.innovation-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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