Serco Group plc (Serco), the international service company, announces today that it has signed a contract for an outsourcing partnership that will provide customer contact and support services for AEGON, the leading life and pensions company. Marking Serco's entry into this important segment of the financial services market, the contract will commence on 1 November 2012 and has a total estimated value to Serco over the 10-year initial term of approximately £170m.
Serco will deliver a wide range of services for AEGON's UK-based protection business. These include managing all aspects of the customer journey from initial underwriting through to claims management for the AEGON Individual Protection (AIP) suite, which comprises a full portfolio of life assurance, critical illness, disability and income protection products. Serco will look after all aspects of policy servicing and claims for some small 'closed books' of pension and life assurance policies that are no longer sold but require ongoing management. It will also work closely with AEGON to deliver business process improvement and customer service excellence through the use of Serco's advanced cloud technology, internet telephony (VoIP), CRM and call centre software.
Under this new partnership Serco will operate primarily from AEGON's offices in Lytham St Annes, which Serco plans to establish as a centre of excellence delivering BPO services to other customers following the transfer of some 330 members of staff. Serco will be responsible for the administration of approximately 500,000 current and closed book policies in total.
Adrian Grace, UK CEO of AEGON, said "Our new partnership with Serco will add further impetus to our developing and highly successful protection business. We're absolutely determined to deliver first-class customer service and to maximise our operational efficiency as we move forward with our progressive development plans for the UK business. Our new strategic partnership will enable us to do just that thanks to Serco's global expertise in service innovation and transformation."
Christopher Hyman, Chief Executive of Serco Group plc, added: "We are delighted to have been chosen by AEGON to deliver these important services, with Serco bringing its substantial experience in the transformation of customer contact services, expertise in end-to-end case management and use of innovative technology. We will be seeking to deliver operational excellence and cost efficiency whilst maintaining the highest levels of customer service. This represents a further significant contract award and strategic development for our growing global BPO business and is a major advance for Serco into the UK Life and Pensions market."