24th Jun 2008 07:00
24th June 2008
Innovation Group PLC
INNOVATION GROUP PLC SIGNS THREE YEAR CONTRACT WITH
SPECIALIST UK MOTOR INSURANCE COMPANY
The Innovation Group plc ('Innovation Group') (LSE: TIG.L), which provides outsourcing services and software solutions to the world's insurance providers, is pleased to announce that it has agreed a three year outsourcing contract with a specialist UK motor insurance company which provides a range of services including classic car and classic motorbike cover as well as commercial and fleet insurance.
The contract is estimated to be worth £5m to Innovation Group over three years, underpinning current expectations.
The contract will see Innovation Group provide first notification of loss and associated claims management services including supply chain management, technical engineering and subrogation management services.
Commenting on the contract agreement Hassan Sadiq, Chief Executive of Innovation Group, said:
"I am extremely pleased to be announcing this new contract. It is further proof of the attractiveness of our offer to major insurance providers and a mark of our growing strength in the motor services segment."
Enquiries:
|
The Innovation Group Hassan Sadiq, Chief Executive Officer Paul Hemsley, Group Finance Director |
Tel: +44 (0) 1489 898300 |
|
Financial Dynamics Juliet Clarke / Matt Dixon / Erwan Gouraud |
Tel: +44 (0) 20 7831 3113 |
Notes to Editors
The Innovation Group plc ("Innovation" or "the Group") provides BPO services and software solutions to insurers and other risk carriers. The software solutions are designed for the handling of policy and claims administrative processes within the insurance industry. The solutions can be utilised in connection with the Group's BPO operations or implemented on a stand alone basis. Approximately 77% of the Innovation Group's total revenues are now recurring with the remainder coming from the sale and support of its software solutions. The Group provides software and outsourcing services on a non-branded basis.
The global BPO market is estimated to grow at 14% CAGR from 2007 to 2010 according to IDC (May 2006) and outpace IT services. In North America, BPO is estimated to grow by an 8.8% compound annual growth rate to $100 billion by 2009. (Gartner 2005)
Datamonitor, August 2006, has also said there has been a continued increase in the propensity to outsource business processes in the insurance industry with 47% 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 highest priority business functions for BPO and among the fastest growing BPO areas.
Innovation has over 300 global clients including Allstate, LeasePlan, The Ford Motor Company, Aviva, AXA Insurance, Royal & Sun Alliance, Toyota (South Africa) and Zurich (UK). The Group processes more than 3 million claims per year with 20% direct claims cost saving achieved. The software operates in 8 languages and the Group has approximately 2300 people across offices in North America, the UK, Germany, South Africa, Australia, Japan, France, Spain, Netherlands and Belgium.
www.innovation-group.com
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