Landmark deal marks i-flex’s strategic entry into the insurance domain
Mumbai, November 7, 2005 – i-flex® solutions (Reuters: IFLX.BO/IFLX.NS), a leading provider of enterprise solutions to the global financial services industry, today announced that Tokio Marine Management Inc (TMM) has awarded i-flex a letter of offer to replace TMM’s legacy policy processing platform with a solution comprising best-of-breed components. TMM is the manager for the US insurance operations of Tokio Marine & Nichido Fire Insurance Co Ltd. (Japan), Japan’s oldest and largest property and casualty insurer.
The deal marks a strategic entry for i-flex into the insurance domain. Five months ago i-flex announced the acquisition of a majority stake in Castek Software Inc. Castek offers core insurance-business processing systems for large- and mid-sized Property and Casualty (P&C) insurers.
In a move that is set to reshape the technology landscape in insurance, i-flex solutions and its partners have formed a consortium that has created a comprehensive yet flexible component-based solution for the P&C insurance industry. The next-generation solution is centered around Castek’s Insure3 processing platform and encompasses insurance product and process configuration, customer-focused, full-lifecycle policy administration, including agency and direct billing, a rating service and document publishing and printing. It will process TMM’s commercial business for all states and territories in the USA.
Under the terms of the agreement with TMM, i-flex will take overall responsibility for implementing a policy administration solution, a data warehousing and reporting solution, as well as providing managed services during the course of the implementation.
The solution brings together:
Castek’s Insure3 as the core application
Appix’s subject matter and project management expertise in the P&C industry
STG’s Renaissance billing module to manage agency and direct billing
ISO’s Rating Service for ISO rates, products and statutory codes and custom rating configuration
Document Science’s xPression toolset with CCH ReadyForms for all printing needs and industry standard forms
Regulatory reporting services from Perr & Knight
System integration, implementation and program management from i-flex
‘There was a compelling need for us to transform our processing platform to make it more responsive to ever changing business requirements in line with the severe pressures thrown up by a highly competitive market place. i-flex’s domain expertise, systems integration capability and execution track record combined with Castek’s future-ready products and the caliber of the other members of the consortium created a compelling value proposition for us,’ said Dave Pieffer – Senior Vice-President, Underwriting, TMM.
‘When contemplating a replacement project of this magnitude, it is practically impossible to anticipate every eventuality and document every requirement at the outset’ said Aidan McManus – VP Information Technology. ‘In essence – you don’t know what you don’t know. So we needed a platform that can easily cope with changes as they happen. With i-flex’s componentized and best of breed solution we get this flexibility.’
According to Celent, the total IT spend in the P&C insurance industry is a USD $13.2 billion market opportunity and is expected to grow to USD $20.8 billion by 2005. The IT spend in 2005 on policy administration in the US alone is $2.2 billion.
‘Tokio Marine Nichido is a stellar brand in the global insurance market. We are delighted to partner with Tokio Marine Management on this strategic initiative,’ said R. Ravisankar – CEO, International Operations and Business Development, i-flex solutions. ‘The insurance industry is at an inflection point with insurance providers being compelled to seek an IT architecture that allows agility and flexibility without compromising on business functionality. The Tokio Marine initiative is a great example for other insurance companies wanting to maximize efficiency and achieve competitive advantage in a challenging environment.’
‘The recent spate of natural calamities and geo-political upheavals has radically altered the commercial insurance business. Increasingly, insurance providers are forced to improve their operational performance and innovate. Insurers must improve the policy and new business processes and adopt new technologies that will support their business vision. Selection of new solutions with solid functionality and best in class technologies is a critical success factor,’ said Kimberly Harris-Ferrante, Research Vice President in Gartner.
About Tokio Marine Management, Inc.
Tokio Marine Management, Inc. is the wholly owned subsidiary of the U.S. branch of Tokio Marine & Nichido Fire Insurance Co., Ltd. (Japan), which is in turn owned by Japan’s largest Property & Casualty insurer, Millea Holdings Inc.
Tokio Marine specializes in writing Property and Casualty insurance and offers a range of services designed to minimize the cost of losses.
Castek Software Inc. (Toronto, ON.) specializes in strategic business software for Property and Casualty insurance. Recognized for the advanced architecture and flexibility of its products, Castek provides carriers with a suite of core business processing systems for insurance product and process configuration, policy processing, customer billing and claims management.
For more information, please visit www.castek.com or call (+1)416-777-2550.
About i-flex solutions
i-flex® solutions (Reuters: IFLX.BO & IFLX.NS) is a world leader in providing IT solutions to the financial services industry, with more than 570 customers in 115 countries. i-flex’s range of products and custom solutions and consulting services enable financial institutions to cut costs, respond rapidly to market needs, enhance customer service levels and mitigate risk. For information, please visit www.iflexsolutions.com.