SulAmerica, IBM sign $200m deal
Brazilian insurance giant SulAmerica has agreed a $200-million-plus (£137m+), 12-year deal with IBM under which the latter will be responsible for SulAmerica’s Life & Pension Insurance operations’ back-office functions, including document-transfer and claim-management activity. The deal will see the construction of a service centre in Sao Paulo state, and the creation of a new insurance processing product for the Brazilian market, as well as guaranteed employment by IBM of a number of SulAmerica’s existing staff.
“This is a pioneer project in Latin America,” said Eduardo Bandeira de Mello Joia, IBM Brazil Vice President. “For the first time, an insurance company is outsourcing activities directly related to business of this scope. Under the initiative, many benefits are expected, such as cost reduction, greater efficiency and agility due to the processes automation, expanding the company’s competitive advantage… In addition, the company’s employees will be able to dedicate themselves to more strategic initiatives, such as innovative projects improving customers relationship, bringing additional intelligence, expertise and insight into the business.”
Speaking to the press about the new processing product to be developed as part of the deal, Renato Russo, SulAmerica Life & Pension Vice President, said: “This tool will strengthen the insurance company’s goals to reach excellence levels in providing services to its customers and higher flexibility in product development. Through this contract, SulAmerica expects to achieve significant cost savings within the first year of the contract.”