Aviva expands TCS deal to run more UK life policies

Aviva has expanded its long-running technology partnership with Tata Consultancy Services, handing the Indian group responsibility for administering more than 6.5 million life and pensions policies in the UK through its subsidiary Diligenta.

The latest agreement adds a further 1.1 million life insurance policies to the portfolio that Diligenta already manages for the insurer. The policies will sit on TCS's BaNCS platform, which serves as the digital core for the operation.

Aviva is one of the UK's largest providers of insurance, wealth and retirement products. The group has been consolidating legacy systems and outsourcing policy administration in an effort to simplify its technology and reduce operating costs.

Digital overhaul

The expanded scope of work will extend TCS's end-to-end policy administration services across a broader slice of Aviva's UK life and pensions book. Diligenta will provide regulated administration services, while BaNCS will handle core processing and data.

TCS said the programme will introduce more self-service options for policyholders. It also plans new digital service centres and a more streamlined set of back-end systems for Aviva's life and pensions business.

The companies stated that the operating model aligns with the UK's Consumer Duty rules. These rules place a stronger emphasis on clear communication, fair value and good outcomes for retail customers.

Customer focus

The partnership between Aviva and TCS dates back several years and already covers millions of UK policies. The latest move extends that arrangement rather than introducing a new provider.

R Vivekanand, President, BFSI Products & Platforms at TCS, said the relationship had deepened over time.

"Our enduring partnership with Aviva, established on mutual trust and commitment over many years, has continually strengthened and delivered a better experience for customers. Aviva's ongoing trust in our services and, their decision to entrust us with additional portfolios, demonstrates the depth of our collaboration."

"We remain dedicated to delivering an exceptional experience for Aviva and its customers. We continue to invest in our TCS BaNCSTM platform and services to stay ahead in the fast-changing tech landscape, as we strive to enhance end-to-end customer experience benchmarks within the UK Life and Pensions industry," said R Vivekanand, President, BFSI Products & Platforms, TCS.

TCS said its teams apply the BaNCS software along with knowledge of insurance operations. The company aims to improve service quality and the experience for policyholders, advisers and back-office staff.

The operating model is designed to give faster resolution of customer queries. It is also intended to provide easier access to information for customers and intermediaries.

BaNCS at the core

TCS BaNCS is a core suite of products that serves banking, capital markets and insurance institutions. The company says more than 500 financial firms worldwide use the software.

For life insurance and pensions, BaNCS runs as a digital core that supports a range of customer and staff interactions. It includes tools such as conversational interfaces that guide users through policy servicing tasks.

The platform also includes a product configuration engine that supports rapid design of new insurance products. TCS said this feature can shorten the time between product design and launch.

BaNCS exposes a set of domain application programming interfaces that allow Aviva to link the core system to external distributors, advisers and internal channels. TCS said this structure supports a single platform across channels and business lines.

The company said the platform supports features such as first-point resolution of simple requests, straight-through processing for defined transactions and risk controls in the workflow. These features are intended to underpin self-service, targeted communications and insight-driven engagement for policyholders.

Diligenta's role

Diligenta is TCS's UK-based, FCA-regulated subsidiary focused on third-party administration for the life and pensions sector. It already administers more than 20 million policies for multiple clients.

The business has migrated several million policies for Aviva and other insurers onto BaNCS over the past decade. TCS said Diligenta operates a highly digitised and automated platform for these books of business.

For the new Aviva portfolio, Diligenta plans to apply the same migration and service model. TCS said this would maintain consistency of service and digital tools for customers across the combined book.

UK market position

TCS has operated in the UK for around half a century and counts more than 200 large organisations in the country as clients. The firm recently announced plans to create 5,000 new UK jobs over the next three years.

The company has also been ranked as the number one IT service provider for customer satisfaction in the UK in an independent survey of chief information officers at major IT spending organisations.

The enlarged Aviva mandate increases TCS's exposure to the UK life and pensions sector. The company said it will continue to invest in the BaNCS platform and related services as insurers modernise administration of long-term savings and protection products.