28th Dec 2005 07:01
Innovation Group PLC28 December 2005 28 December 2005 THE INNOVATION GROUP PLC Contract win The Innovation Group ("the Group"), which provides outsourcing services andsoftware solutions to insurance providers, today announces that an existingclient, who is a major UK insurer, has extended the use of a Policy licence aswell as entering into an agreement for the use of the Group's new PolicyServices software. This deal follows the successful conclusion of the pilotphase and is part of the licence opportunity that was communicated on 28September 2005. Most of the fee of £1.75 million is expected to be recognised inthe first half of the financial year to 30 September 2006. Dependent on futureusage, further payments may be due in subsequent financial years. In additionthe agreements provide confirmation of professional services income during thisfinancial year. This win is consistent with the Board's business plan. Hassan Sadiq, Chief Executive of The Innovation Group said: "We are delighted with this win today as it recognises our on-going commitmentto the varying business needs of our existing client base and demonstrates theirconfidence in our supplementary products and services which is the backbone toour future growth." Enquiries: The Innovation Group plc 01489 898300Hassan Sadiq, Chief Executive Officer Paul Smolinski, Group Finance Director Bridgewell Securities Limited 020 7003 3131Shaun Dobson Smithfield 020 7360 4900Sara Musgrave/Sarah Richardson Notes to editors: The Innovation Group enables clients to improve results from policy and claimsvalue chains by better management through the use of focused outsourcingservices and targeted software solutions. These offerings provide our clients -be they insurers, banks, retailers, manufacturers or governments - a virtualsupport network that compliments their insurance capabilities for the customersthey serve. Innovation Group offerings are available in the world's largestinsurance markets - North America, the U.K., Germany, South Africa, Australiaand Japan. The Innovation Group's proposition is modular, offering a range of solutionsfrom 'building blocks' for step change to complete solutions for radicaltransformation. We work with clients to generate new products and support theirsales - employing our call centres to convert prospects into policyholders, andour software to quote and manage these policies moving forward. In the event ofan incident - be it home, auto or manufacturer warranty - our call centres,claims professionals and software manage every step of the claims process toensure that efficiency, customer satisfaction, and cost containment areachieved. We provide outstanding depth into the insurance value chain and leverage oursoftware and outsourcing expertise to devise a solution designed for maximumimpact. Our global clients have the flexibility to choose how to use oursolutions and offerings. From outsourcing to insourcing to licensing software,our clients use our expertise to generate maximum impact within theirorganisation. Key market facts: • BPO Market to grow to $110 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 per cent compound annual growth rate by 2009 - Gartner 2005 • Inflexible information systems will complicate global financial institutions' compliance with new regulatory requirements such as Sarbanes-Oxley and the EU's developing Solvency II proposal. • Due to the high systems maintenance costs of mature insurance organisations, only 30 per cent 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 per cent 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 per cent are planning to address policy systems; 48 per cent 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 per cent of insurers are assessing this approach versus 22 per cent 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:
Team Internet