Accenture plc (ACN) announced that it has won a 10-year outsourcing deal from the ace French general insurer, Generali. The French arm of yesteryear global insurer Generali Group is Europe's largest life insurance group and second largest general insurer. Financial details of the deal were not disclosed.
Under the terms of the deal, Accenture will be handling Generali's existing life insurance policies (roughly 100,000 accounts). The idea of outsourcing its operations to Accenture was mainly to reduce the insurer's operating costs.
With rich exposure to the insurance sector, Accenture is set to manage the new responsibility with its Life Insurance Platform. The platform has been designed with some software solutions for the life insurance and annuity carriers, which help them to integrate policy administration operations, develop new policy ideas according to demand and lower operating costs. According to company sources, 40 life insurance companies are already working on the platform.
Leveraging Accenture's insurance outsourcing services, Generali will be able to focus more on the other insurance products as well as retain its life insurance customer base. With this business win, Accenture seems to be quite confident about its market share growth in France as it believes that the investments made in the region to boost demand for insurance products have started paying off.
A survey made by the outsourcing and consulting services provider reveals a trend among the leading insurers to outsource certain operations to streamline and simplify their businesses. Generali exemplifies this trend. The indication is quite simple that Accenture is going to witness a boost in its outsourcing business. Notably, Accenture witnessed 10.0% year-over-year growth in its Outsourcing segment.
Accenture has been winning deals continually from the insurance sector. Though this is encouraging, we believe similar product offerings from the likes of Computer Sciences Corp. (CSC) and International Business Machines Inc. (IBM) are concerns.
Currently, Accenture has a Zacks #3 Rank, (Hold). Computer Sciences has a Zacks #1 Rank, (Strong Buy) and IBM has a Zacks #3 Rank, (Hold).