TCS announces 15-year deal extension with UK-based insurance major Aviva

Tata Consultancy Services (TCS) said that it has extended its partnership with Aviva, the UK’s leading insurance, wealth and retirement provider, in a 15-year agreement to improve its UK life business and enhance customer experience. As part of the deal, the end-to-end policy administration and servicing will expand to cover over 5.5 million policies, which will be managed by Diligenta, TCS’s FCA regulated subsidiary in the UK.

The companies claimed that they have jointly transformed the end-to-end experience of Aviva’s customers over the years, through a strong foundation of digitisation and simplification. Under the new deal, TCS will be deploying TCS BaNCS, which will help Aviva to extend the enhanced customer experience and servicing to expand to cover over 5.5 million policies,  the IT major said in an exchange filing on Tuesday.

TCS’ customer-centric approach to digitisation at the enterprise level will revolve around New Consumer Duty Principles to provide good customer services by offering self-service to customers, digitally powered service delivery centres and a simplified technology landscape.

“Extending this strategic partnership will improve how we serve our customers, further simplify our operations and support our growth ambitions. It will allow us to rationalize our systems and improve efficiency, bringing significant benefits for our customers and the business,” said Doug Brown, CEO Insurance, Wealth & Retirement, Aviva.

“Our long-standing relationship with Aviva over the last 20 years. We are delighted as we embark on the next chapter of this journey, where ongoing investment in our TCS BaNCS-based platform and proven track record will enable Aviva to drive a customer-centric business, even as we continue to improve end-to-end customer experience benchmarks in the UK Life and Pensions industry,” said R Vivekanand, President, BFSI Products & Platforms, TCS.

TCS BFSI Platforms is an end-to-end digital ecosystem that powers the journeys of life, pensions/annuities, property/casualty, and health insurance providers. This SaaS-first platform helps companies manage enterprise simplification, deliver superior customer experience, and achieve digital transformation.

Earlier this month, the IT major reported reported higher-than-expected revenue for Q3 FY24. TCS reported a 2% year-on-year (YoY) growth in consolidated net profit for the quarter to Rs 11,058 crore, and revenue increased 4% to Rs 60,583 crore. Sequentially, the revenue saw a 1.5% increase, while the profit saw a 2.5% decline. TCS said the profit decline was due to a one-time charge of Rs 958 crore incurred during the quarter for the settlement of a legal claim.

The earnings before interest and taxes or EBIT margin was 25%, against 24.3% a quarter ago.  The company secured contracts totaling $8.1 billion in the third quarter, marking a decrease from the $11.2 billion in deals it had acquired in the preceding September quarter.

Shares of TCS ended at Rs 3,799.10, down by 0.06%.

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